Zemco (Pty) Ltd has generated excess cash in the past financial year even though it is a newly established company. The senior management have decided to give themselves performance-linked bonuses and take holiday trips sponsored by the company. Explain this occurrence in business and the costs it attracts.

Answer rating: 100% (QA)

Its not uncommon for businesses even newly established ones like Zemco Pty Ltd to generate excess cash in a financial year This surplus can result fro... View the full answer