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One of the Potential Negative Side Effects of Pay in the Form

Question 112

Multiple Choice

One of the potential negative side effects of pay in the form of sales commissions is


A) a greater incentive for salespeople to engage in unethical or fraudulent sales practices that may eventually cause legal problems for the firm.
B) increased volatility of sales revenue for the firm.
C) the potential that pay levels may get so high that they will increase a firm's marginal wage cost more than its marginal revenue product.
D) an increased likelihood of shirking by workers.

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