Asked by Osano Enoch on Jun 11, 2024
Verified
Sam is responsible for ordering office supplies for the firm gets a bonus if the firm stays well-stocked at all times.The bonus implies he is more likely to
A) Pay lower prices for the supplies
B) Pay higher prices for the supplies
C) Have more stock outs
D) Resign from the position
Bonus
An additional compensation awarded to employees as a reward for their performance beyond their usual salary.
Stock Outs
Occurs when an inventory item is not available in stock, leading to potential lost sales.
Office Supplies
Various products and equipment regularly used in offices, such as paper, pens, computers, and desks.
- Examine the impact of compensation tactics on negotiation practices and results.
Verified Answer
JG
Jariaha GreenJun 15, 2024
Final Answer :
B
Explanation :
The bonus for keeping the firm well-stocked incentivizes Sam to prioritize availability over cost, potentially leading him to pay higher prices to ensure that stock levels are maintained.
Learning Objectives
- Examine the impact of compensation tactics on negotiation practices and results.
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