Multiple Choice
A payday loan company has decided to open several new locations in the city.To decide where to open these locations it hires consultants and pays them per store opened.At the end of the quarter,the company notices a many of the new stores' sales volume fail to meet expectations.To incentivize the consultants to instead focus on opening profitable stores,the company decided to alter the compensation to a percentage of the profit earned per new store.This puts the consultants
A) In a less risky position
B) A more risky position
C) In risk neutral position
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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