Wafflemart Corporation is a leader in its industry.It commands suppliers and is the envy of its competitors with its ability to name its price to customers.Management is compensated with a relatively high level of stock options.The Company has consistently met analysts expectations for stock price performance for each of the last 32 quarters.What are the typical motivators of Wafflemart's situation noted above?
A)Wafflemart has pressure to commit fraud.
B)Wafflemart has incentive to commit fraud.
C)Wafflemart has opportunity to commit fraud.
D)Wafflemart has rationalization to commit fraud.

Question

Quizplus · Accepted Answer

Wafflemart has an incentive to commit fraud due to the high level of stock options for management, which ties their compensation to stock price performance.

Wafflemart Corporation Is a Leader in Its Industry