Which of the Following Is Not True Regarding the Use

question 136

Multiple Choice

Which of the following is not true regarding the use of linear compensation plans?

• A) Such plans encourage "gaming" behavior on the part of managers.
• B) Such plans strongly link managerial compensation to the agreed-upon budget.
• C) Under such plans, managerial reward is independent of budgetary targets.
• D) Under such plans, managerial reward is based principally on actual performance.
• E) Under such plans, managerial reward is based on what managers actually do, not what they do relative to what they say they can do.

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Definitions:

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