1. Which of the following is one of the major factors that affect the level of goal congruence achieved?

A) How experienced top management is in goal setting.

B) How compensation is linked to budgeted performance.

C) How budgeted performance is linked to actual performance.

D) The number of years a company has existed.

E) The number of employees in a company.

2. Operational control has a management-by-exception approach in contrast to management control, which is more consistent with:

A) A non-qualitative set of measures.

B) A non-quantitative set of measures.

C) A management-by-objectives approach.

D) A "hands off" approach.

E) A management-by-incentives approach.

3. Which of the following is a limitation of both return on investment and residual income?

A) Measurement issues.

B) Not easily understood by managers.

C) Favors large units.

D) Can lead to goal congruence problems.

E) There is disincentive for high return on investment units to invest.