​The Components of a Well-Run Incentive Compensation Scheme Include All

question 6

Multiple Choice

​The components of a well-run incentive compensation scheme include all of the following EXCEPT

• A)​performing random acts of kindness to employees
• B)avoiding rewards for outcomes that are not included in the performance measures
• C)rewarding workers who for meet performance measures
• D)​identifying the relevant measures on which to evaluate employees

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Definitions:

Fraud

Intentional deception made for personal gain or to damage another individual.

Sarbanes-Oxley

A U.S. federal law enacted to protect investors by improving the accuracy and reliability of corporate disclosures, made in response to financial scandals.

Public Confidence

The level of trust and belief that the general public has in the stability and integrity of a financial market, institution, or economy.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.