A short-term incentive plan that is designed to motivate the short-term performance of managers and is tied to company profitability is called a(n)

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An annual bonus is typically a short-term incentive plan that rewards managers for achieving specific financial or performance goals. This type of bonus is often tied to company profitability, as it motivates managers to take actions that will increase the company's bottom line in the short term. Gainsharing, eligibility plans, capital accumulation programs, and commission plans may also be used as short-term incentives, but they are not always tied to company profitability.

A Short-Term Incentive Plan That Is Designed to Motivate the Short-Term