The Sales Staff at Macmoo Real Estate Is Compensated Primarily

Multiple Choice

The sales staff at Macmoo Real Estate is compensated primarily based on the value of the properties they sell. However, in order to encourage the salespeople to act in the best interests of the company, Macmoo bases 10 percent of each salesperson's yearly bonus on whether the company as a whole reaches its yearly financial goals. Macmoo's compensation structure is based on which of the following principles?

A) People will act to accomplish a goal when they have a stake in the accomplishment of that goal.
B) An incentive structure should be as simple as possible.
C) An incentive structure is more effective when it encourages people to act in ways that benefit society in general as well as themselves.
D) Compensation policies should always follow the specific requirements of all applicable laws.
E) People will be more likely to follow a policy when they have had some input into the creation of that policy.