Which of the Following Is True of Rewarding Managers on the Basis

Multiple Choice

Which of the following is true of rewarding managers on the basis of residual income?

A) Managers are paid a fixed amount for his services regardless of the risk involved.
B) Managers' efforts are easily measured.
C) Managers taking less risk should be rewarded more since more risk can lead to huge losses.
D) Managers' rewards are dependent on their own efforts and other local economic factors.