By instituting performance-based rewards to CEOs the profits of firms will:
A) rise.
B) fall.
C) remain constant.
D) None of the preceding statements is correct.

Question

Quizplus · Accepted Answer

By instituting performance-based rewards to CEOs, they become more motivated to increase profits, leading to a rise in profits. This is because they are incentivized to perform better and improve the financial health of the company.

By Instituting Performance-Based Rewards to CEOs the Profits of Firms