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The Most Likely Reason a Firm Would Pay Its Sales

Question 291

Multiple Choice

The most likely reason a firm would pay its sales representatives a commission rather than a salary is that it wants to


A) provide sales representatives with a strong incentive to generate more sales for the company.
B) keep the pay system as simple as possible.
C) be able to deduct the cost of compensating the sales representatives from its taxable income.
D) give the sales representatives a stronger incentive to collaborate with each other and act as a team.

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