Firms Continue to Operate in Unfavorable Environments ______

question 32

Multiple Choice

Firms continue to operate in unfavorable environments ______.

• A) because the time value of the abandonment option is zero
• B) to avoid the sunk costs of abandoning investment
• C) when there is a chance that prospects will improve
• D) Three of the above
• E) Two of the above

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Definitions:

Rating Scale

A method for assigning a value to a person's performance or characteristics, often in the form of a numbered or descriptive scale.

Alternation Ranking

A method of evaluating employees where individuals are compared and ranked alternately in terms of best and worst performance.

Performance Measurement

Performance measurement involves the evaluation of the effectiveness and efficiency of an individual, group, or organization's work activities and results.

Simple Ranking

Method of performance measurement that requires managers to rank employees in their group from the highest performer to the poorest performer.