Quiz_179 - 126 -ratesystemof Answer True 126 False Diff:2 PageRef:568\/568 Topic CompensationSystems LearningOutcome Micro17:

Quiz_179 - 126 -ratesystemof Answer True 126 False Diff:2...

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126) A firm might prefer to choose a salary system rather than a commission or piece-rate system ofcompensation when there are concerns about output quality.126)Answer:TrueFalseDiff: 2Page Ref: 568/568Topic: Compensation SystemsLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Reflective Thinking127) One reason why firms would choose a salary system rather than a commission compensationsystem is that their employees might become less concerned about the quality of their work.127)Answer:TrueFalseDiff: 2Page Ref: 568/568Topic: Compensation SystemsLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Reflective ThinkingSHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.128) Companies often find it to be more profitable to use a commission or piece-rate system ofcompensation rather than a salary system, yet many firms continue to pay their workerssalaries. List three reasons why a firm would choose a salary system of compensation.128)Answer: 1) Firms may find it difficult to attribute output to a particular worker. 2) Firms maybe concerned that quality will suffer if does not use a salary system ofcompensation. 3) Workers may dislike the financial risk associated with acommission or a piece-rate compensation system.Diff: 2Page Ref: 568/568Topic: Compensation SystemsLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, andfactor supply and labor in factor marketsAACSB: Reflective Thinking129) Wally, Vijay, Sandra and Consuela make up a software development team at Javasoft. Thefirm is considering implementing one of two incentive compensation schemes. In schemeA, each programmer receives an annual bonus if he or she meets all individualprogramming deadlines. In scheme B, members of the team share equally in a joint bonusif the team meets all of its product delivery deadlines. All four employees are equallytalented but Wally is a slacker who does as little work as he can get away with. Whichscheme might team members prefer? Which scheme will management prefer?
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  • Harshad number, AACSB, Page Ref, Reflective thinking, factor demand

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