1. Which one is not a side effect of incentive compensation? (a) Managers are sometimes paid due to luck. (b) Sometimes managers' contribution is not captured. ( c) Induce short-termism. (d) Managers are reluctant to take risk.

Foundations of Business (MindTap Course List)
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Chapter16: Mastering Financial Management
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1. Which one is not a side effect of incentive compensation? (a) Managers are
sometimes paid due to luck. (b) Sometimes managers' contribution is not captured . (
c) Induce short-termism. (d) Managers are reluctant to take risk.
Transcribed Image Text:1. Which one is not a side effect of incentive compensation? (a) Managers are sometimes paid due to luck. (b) Sometimes managers' contribution is not captured . ( c) Induce short-termism. (d) Managers are reluctant to take risk.
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