Question
Susie owns and operates a used car business employing five sales staff. One of the staff, Megan, boasts the top sales every month, and receives
Susie owns and operates a used car business employing five sales staff. One of the staff, Megan, boasts the top sales every month, and receives bonuses mush higher than the other staff. The pay structure involves a base salary of $30,000 per year, plus 50% of the profit made on each vehicle sold (above total cost price). Susie is conscious of maintaining high sales turnover, which is a key factor in business success. (a) What potential conflict of interest can you see in this scenario? (b) Susie is considering changing to a partnership structure with Megan as a part-owner. What are the potential risks and rewards of this move?
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