Wiley CPA Review QOTD – BEC

Wiley CPA Software
 

The following is from the Wiley CPA 2011 Test Bank Software (Online). Click here to get over 600 BEC CPA Exam practice questions for $87.

Topic: Corporate Governance

Which of the following forms of compensation is more likely to result in shirking by management?

A: Fixed compensation.
B: Base salary and bonus.
C: Base salary and stock options.
D: Base salary and stock grants.

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Leave a Reply

6 comments

Alex 10 years ago

A. Fixed compensation

SL 10 years ago

A. Fixed Compensation

Allyson 10 years ago

c.??

Allyson 10 years ago

A! (I just read Jeff's notes)

Ann 10 years ago

This is about the fifth time I've seen this question. Definitely A since it gives the least incentive to the manager to act in the benefit of the shareholders.

Faraz 10 years ago

Is there any exam practice questions only from Corporate Governance? in form of software or text?