Managers can be motivated to manage EPS when ________.

Question

Quizplus · Accepted Answer

Managers are more likely to be motivated to manage EPS when their compensation is tied to net income or stock price. This is because EPS is a measure of a company's profitability and can have a direct impact on stock prices and executive compensation. In contrast, economic conditions, armed conflict, or a newly formed company may have other priorities that take precedence over EPS management.

Managers Can Be Motivated to Manage EPS When ________