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Business, 28.06.2019 20:40 Masielovebug

The most likely reason a firm would pay its sales representatives a commission rather than a salary is that it wants to: provide sales representatives with a strong incentive to generate more sales for the company. be able to deduct the cost of compensating the sales representatives from its taxable income. give the sales representatives a stronger incentive to collaborate with each other and act as a team. keep the pay system as simple as possible.

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