OnionDome Manufacturing Has Suffered Major Losses in the Last Few

Multiple Choice

OnionDome Manufacturing has suffered major losses in the last few years.Last year the board of directors fired the CEO and hired Simon Simple from one of its major competitors.Simple has laid off 20 percent of the hourly employees and 15 percent of the managers and professional staff in the company.He has sold off two unprofitable subsidiaries,and for the first time in five years the company has posted a small profit.This year the board of directors has given Simple a multi-million dollar bonus.Which of the following statements is TRUE?

A) It is unusual for a company that has experienced mass layoffs to give executives large bonuses.
B) Simple should not receive a performance bonus this year because the profits are due to accounting manipulations.
C) The Sarbanes-Oxley Act prohibits this type of bonus.
D) The employees at OnionDome may feel that it is unethical for Simple to have received this bonus.