Which of the Following Statements Is False Regarding the Use

question 83

Multiple Choice

Which of the following statements is false regarding the use of incentives,commissions and bonuses in the payroll system?

• A)Using incentives,commissions,and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses.
• B)Bonus/incentive schemes must be properly designed with realistic,attainable goals that can be objectively measured.
• C)Incentive schemes can result in undesirable behavior.
• D)Incentive schemes can create fraud.

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Definitions:

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single investment's performance.

Portfolio Theory

A framework for constructing a portfolio of assets in such a way that it optimizes the balance between risk and return.

Risk Aversion

The reluctance to take on investments with higher levels of uncertainty or potential for loss.

Accepting Risk

Accepting risk involves recognizing and undertaking the chance of loss or damage in the expectation of a potential gain.