The most likely reason a firm would pay its sales representatives a commission rather than a salary is that it wants to
A) provide sales representatives with a strong incentive to generate more sales for the company.
B) keep the pay system as simple as possible.
C) be able to deduct the cost of compensating the sales representatives from its taxable income.
D) give the sales representatives a stronger incentive to collaborate with each other and act as a team.

Question

Quizplus · Accepted Answer

Commissions base pay on a percentage of sales. Thus, the greater the sales the more income the sales representative will earn. This should give the representatives a strong incentive to push for additional sales.

The Most Likely Reason a Firm Would Pay Its Sales