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Suppose that bonuses for a division manager are determined by the...
Suppose that bonuses for a division manager are determined by the difference between the division's return on assets (ROA) and a "target" ROA. Which of the following methods of determining "target ROA" are least susceptible to the "X-Bar" problem discussed in class?
a. Traget ROA determined through the annual budgeting process
B. Target defined as 8%
C. Target ROA defined as the actual ROA achieved in the prior year
D. Target Roa defined as the average ROA realized by the the other divisions manager in the same firm
E. None of the above
Answer & Explanation
Solved by verified expertAnswered by MasterSummerTapir21 on coursehero.com
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