Various Researchers Have Indicated That When Managers Receive Bonuses Based

question 59

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.
• E) None of the given Answers.

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