7)What is a truth-inducing bonus scheme?

c. a scheme that penalizes managers who set output targets too low

d. a scheme that provides the agent with information on agency costs

a. a scheme that enables the principal to prepare a budget without the agent's involvement b. a scheme that includes rewards for agents who set high output targets

Question 6 (1 mark)

Mark to review this quest

Previous Nat

Q

Which of the following is a disadvantage of a balanced scorecard for evaluating a manager's performance?

a. It forces a company to consider the range of activities and results that lead to success, not just short-term financial criteria. b. It suggests to management that customers, learning and innovation, internal processes, and income are all important

c. It is subject to manipulation. d. It covers a range of activities over both the long and short term.