Management Compensation That Is Tied to Profits May Create Incentives

question 80

True/False

Management compensation that is tied to profits may create incentives to commit fraud.

---

Definitions:

Reliable

refers to the consistency and dependability of a measure or test over time, yielding similar results in repeated applications under the same conditions.

Separate Knowing

An approach to understanding or knowing that emphasizes critical examination and analysis of arguments.

Objectivity

The quality of being unbiased, fair, and not influenced by personal feelings or opinions in considering and representing facts.

Stand Apart

To distinguish oneself or something by exhibiting unique or superior qualities compared to others.