Which of the Following Reasons Would NOT Explain the Complexity

question 1

Multiple Choice

Which of the following reasons would NOT explain the complexity of executive compensation?

• A) The decisions made by top-level managers are typically complex and nonroutine.
• B) An executive's decisions often affect firm performance only over the long run.
• C) A number of factors intervene between top-level management decisions and firm performance.
• D) The compensation committee may not have comprehensive firm performance data.

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Definitions:

Equipment

Tangible property other than land or buildings that is used in operations, such as machinery, computers, vehicles, and furniture.

Cost of Goods Sold

The outlays directly connected to the making of goods a company markets, comprising both material and labor expenses.

Net Income

The remaining income of a company after subtracting all costs and taxes from its total income.

Inventory

A collection of goods or materials a company holds for sale or production.