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Risk aversion by managers should be recognized when revising compensation plans because: Multiple...

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Accounting

Risk aversion by managers should be recognized when revising compensation plans because:

Multiple Choice

Most companies want risk taking managers.

It is the difference between good and bad managers.

Most companies want risk averse managers.

Compensation mix (salary, bonus) can influence a manager's risk aversion.

It costs less to pay risk averse managers.

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