According to One of the Top Management Consultants of the Past

question 284

Multiple Choice

According to one of the top management consultants of the past 40 years,the late Peter Drucker:

• A)top executives are entitled to any level of pay they can negotiate with their board of directors.
• B)the annual pay for top executives should include a small guaranteed salary and should include a very large bonus in years where the firm earns higher profits than competitors.
• C)all bonuses paid to CEOs should be tied to long-run increases in market share.
• D)CEOs should not earn much more than 20 times the earnings of the company's lowest-paid employee.

---

Definitions:

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, giving them rights to dividends and voting in shareholder meetings.

General Journal

A ledger in accounting that records all day-to-day financial transactions of a company.

Accounts Receivable

Funds due to a company from its clients for products or services provided on credit.

Customer Payments

The amounts of money received from customers in exchange for goods or services provided by a company.