By switching its sales agents to a sales neutral profit commission, the firm is trying to convince the agents
a. To not change their sales patterns, as it would not change their compensation
b. Improve their compensation by pricing less aggressively
c. Improve their compensation by pricing more aggressively (lowering prices)
d. None of the above
Question 2
A Real Option Value is:
a. An option that been deflated by the cost of living index makes it a real option.
b. An opportunity cost of capital.
c. An opportunity to implement cost savings or revenue expansion in a flexible business plan.
d. An objective function and a decision rule that comes from it.
e. Both a and b.
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