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:

Uncertainty Avoidance

The degree to which a culture tolerates ambiguity and uncertainty.

Conflict

A situation where two or more parties have incompatible objectives, interests, or needs.

Uncertainty Avoidance

A cultural dimension that describes the extent to which individuals in a society are uncomfortable with ambiguity and uncertainty, often preferring clear rules and predictability.

Conflict

A situation where individuals or groups have opposing interests, ideas, or beliefs that clash.