What when the firms revenues are higher


Question: A firm pays larger bonuses to its employees when the firm's revenues are higher. Which of the following is a problem with this compensation scheme? Group of answer choices Revenues can vary with economic conditions that have nothing to do with employee performance. Higher revenues do not necessarily mean higher profits. All of these answers are correct. Some employees can free ride. Some employees such as mailroom and janitorial staff have little influence on the firm's revenues.

 

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