Question 1

Which of these is a disadvantage for compensating on future performance?

Accepted Answer

A) a short-term orientation. 
B) a disincentive to invest in new technology. 
C) a focus of attention on the long-run. 
D) rewards that come too far in the future to be motivational. 
A) a short-term orientation. 
B) a disincentive to invest in new technology. 
C) a focus of attention on the long-run. 
D) rewards that come too far in the future to be motivational.

Question 2

Which statement is true concerning the agency view of motivation?

Accepted Answer

A) The agency view of motivation focuses on the relationships between principals and agents. 
B) The agency view of motivation looks for ways to encourage agents to act in the interests of principals. 
C) the agency view of motivation looks for ways to encourage agents to act in the interests of principals. 
D) the agency view of motivation focuses on the relationships between shareholders and management. 
A) The agency view of motivation focuses on the relationships between principals and agents. 
B) The agency view of motivation looks for ways to encourage agents to act in the interests of principals. 
C) the agency view of motivation looks for ways to encourage agents to act in the interests of principals. 
D) the agency view of motivation focuses on the relationships between shareholders and management.

Question 3

The agency theory of motivation deals with relationships between supervisors and workers where the principals assign responsibility to the workers and the workers work on behalf of the supervisors.Examples of principals and agents includes

Accepted Answer

A) shareholders and the board of directors. 
B) board of directors and top management. 
C) top management and division managers. 
D) All of the answers are correct. 
A) shareholders and the board of directors. 
B) board of directors and top management. 
C) top management and division managers. 
D) All of the answers are correct.

Question 4

Which of the following is not usually one of the perspectives used in the balanced scorecard?

Accepted Answer

A) Learning and growth 
B) Congeniality 
C) Customer 
D) Financial 
A) Learning and growth 
B) Congeniality 
C) Customer 
D) Financial

Question 5

Which of these is the perspective of the balanced scorecard that uses such measures as customer satisfaction,customer retention,market share,and customer profitability?

Accepted Answer

A) financial perspective. 
B) internal business and production process perspective. 
C) learning and growth perspective. 
D) customer perspective. 
A) financial perspective. 
B) internal business and production process perspective. 
C) learning and growth perspective. 
D) customer perspective.

Question 6

The theory which maintains that people act in ways to obtain the rewards that they desire and prevent the penalties that they wish to avoid is called the

Accepted Answer

A) agency theory. 
B) expectancy theory. 
C) reward-penalty theory. 
D) mini-max theory. 
A) agency theory. 
B) expectancy theory. 
C) reward-penalty theory. 
D) mini-max theory.

Question 7

The expectancy view of motivation recommends providing which of the following?

Accepted Answer

A) cash rewards for all employees. 
B) extended vacation time during periods of high growth. 
C) encouragement for agents to act in the interests of principals. 
D) A high probability that behaving as the organization wishes will lead to the rewards. 
A) cash rewards for all employees. 
B) extended vacation time during periods of high growth. 
C) encouragement for agents to act in the interests of principals. 
D) A high probability that behaving as the organization wishes will lead to the rewards.

Question 8

According to the agency view,the objective of a good incentive compensation system is to minimize agency costs by balancing the costs of controls and

Accepted Answer

A) disincentives against the risks of divergent behavior. 
B) incentives against the risks of divergent behavior. 
C) incentives against the cost of divergent behavior. 
D) disincentives against the cost of divergent behavior. 
A) disincentives against the risks of divergent behavior. 
B) incentives against the risks of divergent behavior. 
C) incentives against the cost of divergent behavior. 
D) disincentives against the cost of divergent behavior.

Question 9

What provides rewards to managers for upside company stock performance but no out-of-pocket penalty for downside company stock performance,yet gives the manager an orientation to how well the company's stock is doing?

Accepted Answer

A) Stock rights 
B) Stock options 
C) Stock warrants 
D) Stock dividends 
A) Stock rights 
B) Stock options 
C) Stock warrants 
D) Stock dividends

Question 10

Which statement is true concerning the expectancy view of motivation?

Accepted Answer

A) The expectancy view of motivation focuses on the relationships between principals and agents. 
B) The expectancy view of motivation recommends providing a high probability that behaving as the organization wishes will lead to desirable rewards. 
C) The expectancy view of motivation looks for way to encourage agents to act in the interests of principals. 
D) None of the answers is correct. 
A) The expectancy view of motivation focuses on the relationships between principals and agents. 
B) The expectancy view of motivation recommends providing a high probability that behaving as the organization wishes will lead to desirable rewards. 
C) The expectancy view of motivation looks for way to encourage agents to act in the interests of principals. 
D) None of the answers is correct.

Question 11

Which of these is an advantage for companies to award managerial performance based on a subjective approach?

Accepted Answer

A) The subjective approach considers factors not explicitly captured in the formula approach. 
B) Managers know what reward they will get if they achieve expectations. 
C) Managers who do not fully trust their superiors tend to prefer this approach. 
D) All of the answers are correct. 
A) The subjective approach considers factors not explicitly captured in the formula approach. 
B) Managers know what reward they will get if they achieve expectations. 
C) Managers who do not fully trust their superiors tend to prefer this approach. 
D) All of the answers are correct.

Question 12

Which of the following is a control that can be instituted to prevent financial fraud?

Accepted Answer

A) separation of duties. 
B) internal auditors. 
C) independent auditors. 
D) All of the answers are correct. 
A) separation of duties. 
B) internal auditors. 
C) independent auditors. 
D) All of the answers are correct.

Question 13

How do decentralized companies that have many divisions doing diverse activities tend to weight the performance evaluation?

Accepted Answer

A) more on each division's performance and less on company-wide performance. 
B) less on each division's performance and more on company-wide performance. 
C) on the stock market performance of the company's shares,only. 
D) equally between each division's performance and company-wide performance. 
A) more on each division's performance and less on company-wide performance. 
B) less on each division's performance and more on company-wide performance. 
C) on the stock market performance of the company's shares,only. 
D) equally between each division's performance and company-wide performance.

Question 14

The impact of employee and management fraud is staggering both in terms of dollar costs and effect on the victims.Presented below are three independent cases of employee wrong doing.
   
For each of the three situations presented above,describe the recommendations that the internal auditors should make to prevent similar problems in the future.

Accepted Answer

A: Inventory Shrinkage
The inventory shr

Question 15

Which of these is the perspective of the balanced scorecard that is at the top of a nonprofit organizations mission statement?

Accepted Answer

A) financial perspective. 
B) internal business and production process perspective. 
C) learning and growth perspective. 
D) customer perspective. 
A) financial perspective. 
B) internal business and production process perspective. 
C) learning and growth perspective. 
D) customer perspective.

Question 16

The agency theory of motivation deals with relationships between supervisors and workers where the principals assign responsibility to the workers and the workers work on behalf of the supervisors.Examples of principals and agents includes

Accepted Answer

A) board of directors and top management. 
B) top management and division managers. 
C) division managers and department managers. 
D) All of the answers are correct. 
A) board of directors and top management. 
B) top management and division managers. 
C) division managers and department managers. 
D) All of the answers are correct.

Question 17

What are the incentives for committing financial fraud?

Accepted Answer

Managers often have incentives for commi

Question 18

How do incentive plans affect the development phase of the product life cycle?

Accepted Answer

Incentive plans based on short-term acco

Question 19

What is the focus of the agency view of motivation?

Accepted Answer

A) relationships between customers and agents. 
B) Ways to discourage agents to act in the interests of principals. 
C) Ways to encourage principals to act in the interests of agents. 
D) Ways to encourage agents to act in the interests of principals. 
A) relationships between customers and agents. 
B) Ways to discourage agents to act in the interests of principals. 
C) Ways to encourage principals to act in the interests of agents. 
D) Ways to encourage agents to act in the interests of principals.

Question 20

The balanced scorecard is used to tie performance measures to which of the following?

Accepted Answer

A) organizational goals. 
B) short-term objectives only. 
C) long-term objectives only. 
D) regulatory requirements. 
A) organizational goals. 
B) short-term objectives only. 
C) long-term objectives only. 
D) regulatory requirements.

Which of these is a disadvantage for compensating on future performance?

Which statement is true concerning the agency view of motivation?

The agency theory of motivation deals with relationships between supervisors and workers where the principals assign responsibility to the workers and the workers work on behalf of the supervisors.Examples of principals and agents includes

Which of the following is not usually one of the perspectives used in the balanced scorecard?

Which of these is the perspective of the balanced scorecard that uses such measures as customer satisfaction,customer retention,market share,and customer profitability?

The theory which maintains that people act in ways to obtain the rewards that they desire and prevent the penalties that they wish to avoid is called the

The expectancy view of motivation recommends providing which of the following?

According to the agency view,the objective of a good incentive compensation system is to minimize agency costs by balancing the costs of controls and

What provides rewards to managers for upside company stock performance but no out-of-pocket penalty for downside company stock performance,yet gives the manager an orientation to how well the company's stock is doing?

Which statement is true concerning the expectancy view of motivation?

Which of these is an advantage for companies to award managerial performance based on a subjective approach?

Which of the following is a control that can be instituted to prevent financial fraud?

How do decentralized companies that have many divisions doing diverse activities tend to weight the performance evaluation?

Which of these is the perspective of the balanced scorecard that is at the top of a nonprofit organizations mission statement?

The agency theory of motivation deals with relationships between supervisors and workers where the principals assign responsibility to the workers and the workers work on behalf of the supervisors.Examples of principals and agents includes

What are the incentives for committing financial fraud?

How do incentive plans affect the development phase of the product life cycle?

What is the focus of the agency view of motivation?

The balanced scorecard is used to tie performance measures to which of the following?

Fundamental Concepts

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Allocating Costs to Responsibility Centers

Filters

Exam 12: Incentive Issues

Which of these is a disadvantage for compensating on future performance?

Which statement is true concerning the agency view of motivation?

The agency theory of motivation deals with relationships between supervisors and workers where the principals assign responsibility to the workers and the workers work on behalf of the supervisors.Examples of principals and agents includes

Which of the following is not usually one of the perspectives used in the balanced scorecard?

Which of these is the perspective of the balanced scorecard that uses such measures as customer satisfaction,customer retention,market share,and customer profitability?

The theory which maintains that people act in ways to obtain the rewards that they desire and prevent the penalties that they wish to avoid is called the

The expectancy view of motivation recommends providing which of the following?

According to the agency view,the objective of a good incentive compensation system is to minimize agency costs by balancing the costs of controls and

What provides rewards to managers for upside company stock performance but no out-of-pocket penalty for downside company stock performance,yet gives the manager an orientation to how well the company's stock is doing?

Which statement is true concerning the expectancy view of motivation?

Which of these is an advantage for companies to award managerial performance based on a subjective approach?

Which of the following is a control that can be instituted to prevent financial fraud?

How do decentralized companies that have many divisions doing diverse activities tend to weight the performance evaluation?

Which of these is the perspective of the balanced scorecard that is at the top of a nonprofit organizations mission statement?

The agency theory of motivation deals with relationships between supervisors and workers where the principals assign responsibility to the workers and the workers work on behalf of the supervisors.Examples of principals and agents includes

What are the incentives for committing financial fraud?

How do incentive plans affect the development phase of the product life cycle?

What is the focus of the agency view of motivation?

The balanced scorecard is used to tie performance measures to which of the following?

Fundamental Concepts

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Allocating Costs to Responsibility Centers

Filters