The Most Likely Reason a Firm Would Pay Its Sales

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