One Continuing Problem with Managerial Incentive-Compensation Plans Is That

question 41

Multiple Choice

One continuing problem with managerial incentive-compensation plans is that:

• A)the plans increase agency problems.
• B)managers prefer guaranteed salaries.
• C)effectiveness of the plans is difficult to evaluate.
• D)the plans do not reward shareholders.

---

Definitions:

Quantitative Measures

Metrics or data points that can be quantified numerically to assess performance, trends, or changes over time.

Asset Purchases

Transactions involving the acquisition of physical or intangible assets that are expected to generate economic benefits for the business.

Capital Investment Decisions

Decisions made by businesses regarding large financial investments in projects or assets, considering future benefits and costs to maximize profitability.

Income Tax

A tax levied by the government directly on income, especially an annual tax on personal income.