Pay for Performance Based on Individual Accomplishment of Goals Tends

question 2

Multiple Choice

Pay for performance based on individual accomplishment of goals tends to:

• A) increase per-unit costs.
• B) decrease employee productivity.
• C) increase employee productivity.
• D) have little effect on employee productivity.
• E) facilitate teamwork.

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Definitions:

Total Assets Turnover Ratio

Measures the turnover of all the firm’s assets; it is calculated by dividing sales by total assets.

Debt Ratio

A financial ratio that measures the extent of a company’s or individual's leverage, calculated by dividing total liabilities by total assets.

Window Dressing

Techniques employed by firms to make their financial statements look better than they really are.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.