Which of the following is most likely to explain the decision to choose model X over model Y?

K has several subsidiary companies. The directors of K’s subsidiaries are paid an annual b onus based upon their particular subsidiary’s reported profits.

The directors of one of K’s subsidiaries are considering the choice between two models of a machine.

Which of the following is most likely to explain the decision to choose model X over model Y?
A . Model X has a better combination of investment and running costs.
B . Model X is the less risky investment.
C . Investing in model X will mean the subsidiary will show a higher profit.
D . Investing in model X will lead to a higher share price.

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Answer: C