Which of the Following Is a Reason Why Some Firms

question 228

Multiple Choice

Which of the following is a reason why some firms do not use commission pay?

• A)It gives workers incentive to produce more.
• B)It increases firm profits.
• C)It is difficult to measure the output and attribute output to a particular worker.
• D)The best workers stay and less productive workers leave.

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Definitions:

Net Present Value Method

A method of evaluating the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Rate Of Return

A financial ratio used to calculate the gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Useful Life

The estimated duration an asset is expected to be functional and economically useful for its intended purpose.

Residual Value

The anticipated worth of an asset at the conclusion of its lifespan, once depreciation has been accounted for.