Accounting Practices Are Likely to Influence Manager Behaviour

question 125

Multiple Choice

Accounting practices are likely to influence manager behaviour:

• A) When bonuses are based on employee turnover
• B) Only in manufacturing organizations
• C) Only in for-profit organizations
• D) When managers are compensated based on accounting earnings

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Definitions:

Economic Precepts

Basic principles or theories that guide the analysis and management of economic activities.

Shareholder Model

A theory of corporate governance focusing on the interests of shareholders, prioritizing financial returns over broader social or ethical considerations.

Stakeholder Model

A theory of organizational management and business ethics that addresses morals and values in managing an organization, centering on the interests of all stakeholders.

Corporate Governance

The system by which companies are directed and controlled, involving the mechanisms, processes, and relations used by various parties to control and to operate corporations.