Various researchers have indicated that when managers receive bonuses based on accounting performance they will:
A) make every effort to maximise profits in any given period.
B) adopt projects with low initial returns to ensure long-term success.
C) ensure income is minimised in a year they will not reach their performance target so that any profits can be recognised in later periods.
D) undertake long-term research and development projects if they are near to retirement.
Correct Answer:
Verified
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