According to the text,which of the following is given as one of the major reason for the recent economic crisis?
A) The owners of a corporation minimize costs and work to increase the stock value of the enterprise.
B) Managers have much shorter time horizons and their bonuses or merit pay may be tied closely to how well they performed in the last four quarters.
C) Managers are willing to accept losses in return for the increased opportunity for greater profits and market share.
D) Managers are more interested in expending corporate resources on activities that do not directly contribute to owner wealth.

Question

Quizplus · Accepted Answer

The text states that "managers have much shorter time horizons and their bonuses or merit pay may be tied closely to how well they performed in the last four quarters." This suggests that managers may prioritize short-term gains over long-term stability, contributing to the economic crisis.

According to the Text,which of the Following Is Given as One