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.
6 comments on “Wiley CPA Review QOTD – BEC”
Is there any exam practice questions only from Corporate Governance? in form of software or text?
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.
A! (I just read Jeff’s notes)
c.??
A. Fixed Compensation
A. Fixed compensation