If Their Bonuses Are Based on Net Income, Managers May

question 13

Multiple Choice

If their bonuses are based on net income, managers may:

• A)postpone writing off bad debts.
• B)increase depreciation.
• C)postpone dividend payments.
• D)hold more inventory.

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Definitions:

Systematic Desensitization

A therapeutic technique used to reduce fear or anxiety, by gradually exposing the person to the feared object or context without any danger.

Exposure

A therapeutic technique where individuals confront their fears or traumatic memories in a safe and controlled environment to reduce their power.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior.