Incentive Systems That Pay Managers for Short-Term Results May Keep

question 13

True/False

Incentive systems that pay managers for short-term results may keep them from accepting long-term proposals with a positive net present value.

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Definitions:

Small Commission

A relatively low percentage or fixed fee paid to an agent or salesperson for facilitating a sale or transaction.

Subjective Measures

Assessments based on personal opinions, interpretations, points of view, or judgments rather than on quantifiable or objective criteria.

Objective Measures

Quantitative indicators used to assess performance or progress in a definitive and unbiased way.

Salesperson's Performance

The assessment of how effectively a salesperson achieves sales targets and contributes to the organization's goals.