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A payday loan company has decided to open seyeral new locations In a city and hires consultants to decide where to open these locations. The
A payday loan company has decided to open seyeral new locations In a city and hires consultants to decide where to open these locations. The consultants are paid pet store that Is opened, and at the end of the quarter, the company notices a many of the new stores' sales yolume fall to meet expectation s. To Incentiylze the consultants to Instead focus on opening protahle storesr the company decided to alter the compensation to a percentage of the profit earned per new store. This puts the consultants and the payday loan company should expect to to compensate for this change. C; In a less risky position; pay the consultants more than they would in the perstore scheme (:1 t more risky position; pay the consultants less than they would in the per store scheme C] In a less risky position; pay the consultants less than they would in the per store scheme C; A more risky position; pay the consultants more than they would in the per store scheme
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