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 incentive plan is based on which assumption?
A) Salespeople are less interested in the company's success than other employees are.
B) Salespeople think that they can have a significant effect on the overall performance of the company.
C) In recent years, management has been concerned that salespeople have not consistently acted in the best interests of the company.
D) Financial incentives are the only effective way to motivate employees.
E) Employees at Maremount are not much different than salespeople at other companies in the industry.

Question

Quizplus · Accepted Answer

The incentive plan at Maremount Corp. is based on the assumption that salespeople think they can have a significant effect on the overall performance of the company. By tying a portion of their bonus to the company's financial goals, the plan motivates salespeople to work towards achieving these goals and thereby contribute to the company's success. The other options are not relevant to the assumption underlying the incentive plan.