A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and decides to pay them per location opened. The company should expect to see a. A small number of badly selected stores b. A small number of well selected stores c. A large number of badly selected stores d. A large number of well selected stores

c. A large number of badly selected stores.

Explanation:

A "payday loan company" is a type of lending company that loans money to people according to their salary and record of employment. This is also known as a "salary loan" which a person can borrow and pay on his next salary day. Most of the time, the interest of such loan is high thus, it becomes essential for jurisdictions to have a limit on the APR (annual percentage rate) being charged.

In the situation above, the payday loan company focused on paying the consultants according to the locations that they are able to open. So, this means that the consultants will not focus much on the profitability of the stores. They will then try to open in many locations within the city. This will then result to a large number of badly selected stores.

So, the company will have to expect that many of the stores will not be able to meet the company's expectations at the end of the fiscal year. They have to change their way to give incentives to the consultants.

answer; balance sheets;

answer: b. false

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