Which one of the following situations is most apt to create an agency conflict?
a. compensating a manager based on his or her division's net income
b. Giving all employees a bonus if a certain level of efficiency is maintained
c. hiring an independent consultant to study the operating efficiency of the firm
d. basing management bonuses on the length of employment
e. laying off employees during a slack period
Ans: d. basing management bonuses on the length of employment
Business
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Most capital budgeting methods focus on accrual-based income
Indicate whether the statement is true or false
Business
Order processing, warehousing, and inventory management are all functions pertaining to:
A) a polycentric orientation. B) physical distribution and logistics. C) sales promotion. D) personal selling. E) chain acquisition.
Business