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An entrepreneur rewards employees only for sales volume, causing some to sell unsuitable products to customers. What was the systemic error?

Answer and explanation

Correct answer: The incentive system ignored quality and customer interest

Employees tend to focus on what the reward system measures. If only sales volume matters, some may maximise transactions even when the product does not fit the customer. A balanced system should include suitability, customer satisfaction, repeat business, complaint rates, and ethical conduct along with sales. The problem was poorly designed incentives, so A is correct.

Related tags

IncentivesSales-EthicsIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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