Generally, the current and deferred types of bonus payment options currently in use tend to focus the manager's attention on short-term performance measures, most commonly:
A)Division profit.
B)After tax corporate profit.
C)Cash flow.
D)Growth in firm value.
E)Stock price.

Question

Quizplus · Accepted Answer

Current and deferred bonus payment options focus on short-term performance measures such as division profit, which is a financial metric that assesses the profitability of a specific business unit. This can be problematic as it may encourage managers to prioritize short-term gains over long-term sustainability and growth.

Generally, the Current and Deferred Types of Bonus Payment Options