Question

Sam is responsible for ordering office supplies for a firm. As part of his compensation, he...

Sam is responsible for ordering office supplies for a firm. As part of his compensation, he gets a bonus if the firm stays well-stocked at all times. The bonus implies that 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

Homework Answers

Answer #1

Option B.

  • The bonus implies that he is more likely to pay higher prices for the supplies.
  • Sam purchases office supplies for a firm and gets bonus if the firm always remains well stocked.
  • A bonus is only an extra sum of money that a person gets as a result of his performance which may be an increment in his salary.
  • He gets this reward only if he ensures that the the firm never goes out of stock, and to do so he must pay higher prices to supply those stocks to that firm from the extra wage he receives.
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