Incorrect/Incomplete question: Complete question read;
Which of the following statements correctly describes management compensation options?
A) Managers do not receive fixed salaries; instead their compensation is based on bonuses and incentives.
B) Perks (perquisites) were eliminated as part of the Sarbanes-Oxley Act.
C) Bonuses are typically awarded for meeting or achieving specific goals.
D) Stock options and awards are part of fixed salary compensation.
Answer:
<u>C) Bonuses are typically awarded for meeting or achieving specific goals.</u>
Explanation:
All the options above with the exception of option C rightly describes management compensation plans. <em>Remember, </em> the term compensation includes<em> both cash and non-cash payments </em>an employee may receive for performing their duties well.
Hence, managers may award certain bonuses (eg 5% salary bonuses, etc) to their employees for working diligently to meet specific goals (like meeting a sales target, new customer acquisition targets, etc).
