Why Is It Necessary to Know the Income Generated by the Managers

question 12

Multiple Choice

Why is it necessary to know the income generated by the managers' decisions and actions?

• A) In order to know the performance potential of the firm and evaluate the quality of the management and of their decisions as agents of the shareholders.
• B) In order to provide a basis for the state to levy taxes based on income.
• C) In order to share the income between partners or shareholders.
• D) All of these

---

Definitions:

Infants

Children in the earliest stage of their lives, typically considered to be from birth to 2 years old.

Adults

Individuals who are considered legally mature and are responsible for their actions, with the age of adulthood varying by jurisdiction.

Contract

A pact between two or more parties that is recognized and enforceable by law.

Immoral

Behavior or actions that are considered to be in violation of ethical principles or social values.