According to the Survey of Senior Managers by Graham, Harvey

question 35

Multiple Choice

According to the survey of senior managers by Graham, Harvey and Rajgopal, the senior managers admitted to the following:
I. adjusting their firms' operations and investments in order to manage earnings.
II. they were willing to decrease discretionary spending in R&D, advertising or maintenance if necessary to meet earnings target.
III. many of them would, if necessary, also defer or reject investment projects with positive
NPVs.

• A) I only
• B) II only
• C) I and II only
• D) I, II, and III

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Definitions:

Least-Preferred

Refers to the option or choice that is viewed as the least favorable or desirable among a set of alternatives.

Offshoring

Relocation of business processes to lower-cost locations overseas.

Partnership

A type of business organization where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Specific Undertaking

A Specific Undertaking refers to a particular project or task that is distinctly defined within the scope of work or agreement.