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Which of the following statements about activity quotas is true?

1) In order to be fair, each salesperson should have the same level for each activity measured
2) Top management should set activity quota levels based on corporate objectives
3) Territorial differences should play a major part in setting activity quota levels
4) The major source of information used for setting activity quota levels is to examine the competition and match or better their levels
5) None of the above statements about activity quotas is true

1 Answer

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Final answer:

The true statement about activity quotas is that they should be set by top management according to corporate objectives. Each salesperson need not have the same activity quotas, and while territorial differences and competition levels are factors, they should not solely dictate quota levels.

Step-by-step explanation:

The student has asked which statement about activity quotas is true. The correct answer is that top management should set activity quota levels based on corporate objectives. Setting the same level for each activity measured is not necessarily fair as it does not take into account individual strengths and circumstances. Additionally, territorial differences are important but should not be the major part in setting activity quotas. Finally, while it can be informative to consider competitors' levels, the major source for setting quotas should be internal company data and strategic goals.

Regarding the incentive for businesses to act in a less discriminatory fashion due to market forces, if a bigoted business owner realizes a significant portion of their customer base is from a group they are biased against, the financial incentive to maintain and grow their customer base may lead to less discriminatory behavior. For the assembly line that struggles to hire qualified workers, the need for a diverse and competent workforce can motivate them to hire without discrimination. Similarly, the home health care services owner may find that discriminatory wage practices can lead to a shortage of quality workers and potential legal issues, providing an incentive to offer equal wages regardless of ethnicity.

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