Some of the problems raised by corporate reward structures include:

Question

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Most of the profit maximizers generally try to maximize only short-term profits. Such firms sacrifice the future to the present and thus do not promote long-term allocational efficiency. The reward structures that exist in many corporations are said to further this tendency. The corporation may be more inclined toward illegal or irresponsible behavior due to the short-term orientation of its managers.

Some of the Problems Raised by Corporate Reward Structures Include