If a firm's owner is better able than the sales staff to bear the risk of a recession, weak incentives:

Question

Quizplus · Accepted Answer

If the owner is better able to bear the risk of a recession, it may be mutually profitable to offer weak incentives to the sales staff. This is because the firm can save money by reducing the cost of incentives while still maintaining motivated employees. The sales staff may appreciate the job security provided by the firm's owner being willing and able to bear the risk of a recession, and may be willing to accept weak incentives in exchange for this security.

If a Firm's Owner Is Better Able Than the Sales