At Maremount Corp

Multiple Choice

At Maremount Corp., ten percent of each salesperson's yearly bonus is based on whether the company as a whole reaches its yearly financial goals. The company's compensation structure is based on which fundamental principle?

A) People will work to accomplish a goal if they have a real stake in reaching the goal.
B) Incentive structures should be as simple as possible.
C) An incentive scheme will be more effective if it encourages individuals to act in ways that benefit both society and the individual.
D) Compensation policies must be legal.
E) People are more likely to adhere to a policy if they have had some input into the development of the policy.