When employees are offered incentives to find new customers, but the aggregate economy is so weak (in recession) that the firm loses consumers, then the incentive plan:
A) is just what was needed in hard times.
B) must be adjusted to make employees work harder in difficult times.
C) suffers from the problems of external risks that employees cannot overcome.
D) must be adhered to no matter what.

Question

Quizplus · Accepted Answer

In a recession, the aggregate economy is weak and external risks are beyond the control of employees. Therefore, even though employees may work hard to find new customers, the firm may still lose consumers due to the downturn in the market. This means that the incentive plan suffers from external risks that employees cannot overcome, and it needs to be adjusted accordingly.

When Employees Are Offered Incentives to Find New Customers, but the Aggregate