After being informed about how actively you managed your division, you will learn whether your division’s actual earnings are high or low. However, since basic financial records are maintained within your division, corporate headquarters does not know whether your division’s earnings are actually high or low. Thus, headquarters requires you to report your division’s earnings. Because you alone are responsible for reporting your division’s earnings, you can choose to report that your division’s earnings are high or low irrespective of whether your division’s actual earnings are high or low. Headquarters will never know your division’s actual earnings for certain unless your report is audited, as explained later.
The amount of earnings you report to corporate headquarters affects your compensation. Specifically, you will receive a bonus if you report that your division’s earnings are high, subject to a possible audit. But, you will not receive a bonus if you report that your division’s earnings are low.
You can report that your division's earnings are high or low irrespective of whether your division's actual earnings are high or low. When you report your division's earnings are high, you will receive a bonus, subject to the outcome of a possible audit.
Please click the ‘CONTINUE’ button to proceed.
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