1. Which of the following statements is correct?

a. When diverse centers exist, management frequently establishes the same target level of performance for all centers.

b. It is safe to assume that, if the manager is willing to work for the organization, he or she should be paid more.

c. Managers should be held responsible for costs or profits over which they have decision making authority.

d. The compensation system cannot be used to align better the risk preferences of the manager and the firm.