It would be undesirable to reduce the executive's compensation if her earnings are due largely to:
A) a flat fee.
B) performance.
C) the owner's demand.
D) the employee's demand.

Question

Quizplus · Accepted Answer

Reducing the executive's compensation would be undesirable if her earnings are largely due to performance because it could demotivate her and potentially decrease her productivity, as her compensation is directly linked to her performance outcomes.

It Would Be Undesirable to Reduce the Executive's Compensation If