Give Two Reasons Why Managers May Have a Bias Toward

question 72

Essay

Give two reasons why managers may have a bias toward smoothing earnings, and give two examples stating how this is achieved in practice.

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Definitions:

Team Leaders

Individuals who are responsible for guiding, directing, and managing the dynamics and performance of a team to achieve set objectives.

External Environment

All outside factors and influences that impact the operations and success of an organization, including economic, legal, political, and social conditions.

Pay Increases

Adjustments made to an employee's salary to reflect performance, inflation, or changes in market rates.

High-Performance Outcomes

Refers to the achievement of significantly better results or performance levels than those set by standards or expectations.