Which of the Following Is Not a Reason for Firms

question 249

Multiple Choice

Which of the following is not a reason for firms to choose a salary system rather than a commission system to compensate their employees?

• A)Research has shown that most companies will find that a salary system will be more profitable than a commission system.
• B)It is often difficult to attribute output to particular workers.
• C)If workers are paid on the basis of the number of units of output they produce, they may become less concerned about quality.
• D)Commission compensation systems are riskier for employees than a salary system, and many workers dislike risk.

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Definitions:

Empowerment

The process of giving power or authority to someone, enabling them to increase control over their own life or situation.

Emotional Standstill

An emotional standstill occurs when an individual feels stuck or unable to progress emotionally, often due to unresolved issues or traumas.

Denial

A defense mechanism in which confrontation with a reality or fact is avoided by denying the existence of the problem or reality.

Bottoming Out

Hitting the lowest point in a declining situation, often leading to a moment of clarity or change in direction.