A Sales Organization Rewards Employees for the Number of Client

question 29

True/False

A sales organization rewards employees for the number of client contacts made via telephone.A review of client contact quality determines that most of these contacts will never convert into sales.As it relates to reward problems,this exemplifies a lack of congruency between rewards and behaviour.

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Definitions:

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.

Competitive Market

A market structure characterized by a large number of sellers and buyers, free entry and exit, and products that are similar enough to be considered substitutes, leading to price competition.

Economic Profit

The difference between a company's total revenue and its total costs, including both explicit and implicit costs, representing the financial gain in excess of opportunity costs.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can dictate prices or market conditions.