Which of the following is NOT a primary motivator for maximizing net income?
A) Compliance with debt covenants.
B) To positively influence users' assessment of management performance.
C) To enhance managers' performance-based compensation.
D) To minimize the company's income tax liability.

Question

Quizplus · Accepted Answer

Minimizing income tax liability is not a primary motivator for maximizing net income. While reducing taxes is important, it is not the primary goal for maximizing net income. The other three choices - compliance with debt covenants, positively influencing users' assessment of management performance, and enhancing managers' performance-based compensation - are all common primary motivators for maximizing net income.

Which of the Following Is NOT a Primary Motivator for Maximizing