Which One of the Following Is Not a Reason Why

question 38

Multiple Choice

Which one of the following is not a reason why executive compensation is a complicated governance mechanism?

• A)A number of other factors affect a firm's performance besides top-level managerial decisions and behaviour.Unpredictable economic, social or legal changes make it difficult to discern the effects of strategic decisions.
• B)The strategic decisions made by top-level managers are typically complex and non-routine, so direct supervision of executives is inappropriate for judging the quality of their decisions.
• C)An executive's decision often affects a firm's financial outcomes over an extended period, making it difficult to assess the effect of current decisions on the corporation's performance.
• D)The market for quality top executives is strong and sometimes firms have to go out of their way to retain talented top executives.

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Definitions:

Tendency To Shirk Work

A behavioral pattern where an individual habitually avoids or evades their duties or responsibilities.

Different Major

Referring to a field of study or specialization in college or university that is distinct from one's current or previous focus.

Encoding

The process of converting ideas and thoughts into a symbolic form for communication.

Appropriate Medium

refers to choosing the most suitable method or channel for communication or information dissemination, considering the context, content, and audience.