A Business Has a Centralized Structure and a Compensation System

question 49

Multiple Choice

A business has a centralized structure and a compensation system that rewards sales volume.However,sales volumes are low compared to competitors who respond more quickly to changes in consumer demand.Which of the following is the most likely source of the low sales performance?

• A) A poorly designed compensation program
• B) An ineffective recruitment and selection program
• C) An inappropriate organization design
• D) A poorly designed performance management program

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Definitions:

Domestic Investment

The total amount of resources invested in the production of goods and services within a country’s borders.

Net Capital Outflow

The purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners.

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners; it can be positive (net outflow) or negative (net inflow).

Foreign-Currency Exchange

The process by which the currency of one country is exchanged for the currency of another, determining how much of one currency is worth in terms of the other.