Sensitive Performance Measures ________

question 125

Multiple Choice

Sensitive performance measures ________.

• A) the salary component of the managers
• B) are not affected by managers' performance and fail to induce them to improve
• C) motivate managers as well as limit their exposure to risk
• D) increases the exposure of credit

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Definitions:

Marketable Securities

Liquid financial instruments that can be quickly converted into cash at a reasonable price.

Companies

Entities engaged in commercial, industrial, or professional activities with the goal of generating profits.

Line of Credit

A flexible loan from a bank or financial institution that allows a borrower to draw funds up to a specified limit at any time, with interest typically charged only on the amount drawn.

Specific Length

A term that might refer to the fixed duration or measure of something, but without more context, its application is too broad to define precisely here.