Which of the Following Is a Correct Statement Regarding the Link

question 25

Multiple Choice

Which of the following is a correct statement regarding the link between decision making and performance evaluation?

• A) Managers are rewarded for good decisions; therefore there is always an incentive for mangers to make the best decision for the firm.
• B) Where managers are rewarded by financial variables such as bottom-line profit, there is often an incentive for managers to avoid a decision that may be in the best interests of the firm but reduce their segment's bottom line.
• C) Managers can be relied on to always make decisions that are in the interests of the firm as a whole.
• D) Decision making and performance evaluation are separate issues for the managers of firms and are seldom related.

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Definitions:

Private Transactions

Private transactions are trades or deals conducted directly between two parties without the involvement of a public exchange or the public eye.

Trading Of Securities

The buying and selling of financial instruments such as stocks, bonds, and derivatives.

Deceptive And Manipulative Practices

Actions deliberately intended to mislead or trick others, often for personal or financial gain and at the expense of others.

Securities Regulation

Laws and regulations governing the issuance, trading, and enforcement of rights associated with financial instruments like stocks and bonds.