Which of the Following Is True of Rewarding Managers on the Basis

question 55

Multiple Choice

Which of the following is true of rewarding managers on the basis of residual income?

• A) Managers are paid a fixed amount for his services regardless of the risk involved.
• B) Managers' efforts are easily measured.
• C) Managers taking less risk should be rewarded more since more risk can lead to huge losses.
• D) Managers' rewards are dependent on their own efforts and other local economic factors.

---

Definitions:

Anna Freud

A pioneer in child psychoanalysis and the youngest daughter of Sigmund Freud who emphasized the importance of the ego and its defense mechanisms in psychology.

Incongruity

The state of being out of place, lacking harmony or consistency with surround elements or expectations.

Theory of Humor

A set of ideas intended to explain what humor is and what social functions it serves, including why we find certain things funny.

Defense Mechanisms

are psychological strategies used unconsciously to protect oneself from anxiety and unacceptable thoughts and feelings.