One of the Potential Negative Side Effects of Pay in the Form

question 270

Multiple Choice

One of the potential negative side effects of pay in the form of sales commissions is

• A) a greater incentive for salespeople to engage in unethical or fraudulent sales practices that may eventually cause legal problems for the firm.
• B) increased volatility of sales revenue for the firm.
• C) the potential that pay levels may get so high that they will increase a firm's marginal wage cost more than its marginal revenue product.
• D) an increased likelihood of shirking by workers.

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Definitions:

True Reason

The actual, underlying cause or rationale behind an action, event, or situation, often contrasted with superficial or stated reasons.

Psychological Capital

A positive psychological state characterized by self-efficacy, optimism, hope, and resilience, influencing an individual's performance and well-being.

Challenging Jobs

Positions or roles that present substantial challenges, requiring skill, effort, and creative problem-solving.

Theoretical Basis

Refers to the foundational concepts and principles that underpin a particular area of study or discipline.