One of the Reasons That Group Incentive Awards Based on Improved

Multiple Choice

One of the reasons that group incentive awards based on improved corporate performance are popular is:

A) The lack of correlation between corporate performance and the performance of individual responsibility center managers.
B) That the individual managers' motivation is largely independent of corporate performance.
C) That the group awards will result in reduced compensation expense and cash outflows when actual profits and cash inflows are below expectations.
D) That group awards function best in large organizations with numerous responsibility centers.