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John is a car salesman working for a Chevy dealership in Houston, Texas. He receives a base salary of $800/month plus a 10% commission on the price above cost for every car that he closes a deal on.
a. Describe a situation in which this payment structure incentivizes John to behave in ways the company would not find desirable.
b. Based on your above answer, how could the dealership either change their payment scheme or introduce some company policy to incentivize John to behave in a way that is more profitable for the dealership?
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Janet is the owner of a beauty salon. All of the stylists are solely accountable to her, and she has complete control of all of the business processes such as bookkeeping and sales. Which is the best term for the structure of her salon?
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