A Problem with Rewarding Managers Only on the Basis of Residual

question 31

Multiple Choice

A problem with rewarding managers only on the basis of residual income is that:

• A)residual income is difficult to measure
• B)on occasion the items in the residual income calculation are not quantifiable
• C)residual income can depend on items over which the manager has little control
• D)All of these answers are correct.

---

Definitions:

Siblings

Brothers or sisters, including those related by birth, adoption, or marriage.

Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.

Dominant Ethnic Group

Refers to the ethnic group in a society that has the most power, influence, and resources, often setting norms and values for the broader community.

Recent Immigrant

An individual who has moved to a new country from their place of origin relatively soon before the present time, adjusting to a new culture and environment.