Which of the Following Reasons Would NOT Explain the Difficulty

question 56

Multiple Choice

Which of the following reasons would NOT explain the difficulty of determining appropriate executive compensation?

• A) The decisions made by top-level managers are typically complex and nonroutine.
• B) An executive's decisions often affect firm performance only over the long run.
• C) A number of factors intervene between top-level management decisions and firm performance (e.g., unpredictable economic, social, or legal changes).
• D) The compensation committee may not have comprehensive firm performance data.

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Definitions:

Franchisees

Individuals or entities that acquire the rights to operate a business under a franchisor's brand and system.

Franchisors

Companies or individuals that grant licenses to third parties to conduct business under their trademark and business model.

International Franchise

A business model where a company allows an individual or other business to operate a franchise in a foreign country using its brand, trademark, and products.

Fast Food Chain

A series of restaurants serving quick-service food items, standardized across locations for consistency and speed.