Performance-Based Bonuses Can Give Managers a Personal Incentive To

question 66

Multiple Choice

Performance-based bonuses can give managers a personal incentive to:

• A)increase sales and enhance company growth.
• B)decrease expenses and boost efficiency.
• C)misrepresent financial data on company performance.
• D)all of the above.

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Definitions:

Reasonable Price

A price that is fair and suitable for the value or quality of goods or services provided, often considered in a legal context.

Gratuitous Promise

A promise for which no consideration is exchanged, often lacking legal enforceability unless certain criteria are met.

Legal Requirement

A stipulation or condition imposed by law that must be obeyed or met, often used in the context of regulatory compliance.

Consideration

In legal contracts, refers to something of value exchanged between parties, which is a necessary element for the contract to be valid.