Various Researchers Have Indicated That When Managers Receive Bonuses Based

question 48

Multiple Choice

Various researchers have indicated that when managers receive bonuses based on accounting performance they will:

• A) make every effort to maximise profits in any given period.
• B) adopt projects with low initial returns to ensure long-term success.
• C) ensure income is minimised in a year they will not reach their performance target so that any profits can be recognised in later periods.
• D) undertake long-term research and development projects if they are near to retirement.