1. Describe why the use of Return on Investment (ROI) to calculate manager's bonuses can lead to GOAL CONGRUENCE issues and how can firms try to minimise this effect?

2. Describe how the use of non-financial measures of performance can assist a company align managers efforts to the longer-term strategic priorities of an organisation. Give at least TWO SPECIFIC EXAMPLES of such measures and indicate how these should lead to higher future financial performance.

3. The ACCC is the authority responsible for monitoring issues related to competition in the Australian economy. BRIEFLY (3-4 lines only) describe why it is important for the ACCC to ensure that pricing cartels are not allowed to be established in ways that may influence pricing. Note: Specific examples of illegal pricing practices are not required.