Benson Marketing Is a Small Firm with Fewer Than 100

question 126

Multiple Choice

Benson Marketing is a small firm with fewer than 100 employees.The CEO wants to implement a pay-for-performance system.The CEO wants the plan to motivate employees,attract top workers,and reduce fixed costs.Which of the following would be most appropriate for Benson?

• A) Straight-commission
• B) Profit sharing
• C) Gainsharing
• D) Merit pay

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Definitions:

After-Tax Discount Rate

The discount rate used in investment appraisal that takes into account the effects of taxes.

Income Tax Rate

The percentage at which individual or corporate income is taxed by the government, which can vary depending on the income level and jurisdiction.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, where the cost is evenly spread over its useful life.

Renovation Cost

The expenses associated with updating or refurbishing an existing structure or space to improve its appearance or functionality.