What Is the Problem When a Performance Standard Focuses on One

question 102

Multiple Choice

What is the problem when a performance standard focuses on one performance criterion and excludes others that are important?

• A) The performance standard suffers from criterion contamination.
• B) The performance standard suffers from criterion deficiency.
• C) The performance standard is not of strategic relevance.
• D) The performance standard has low criterion relevance.

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Definitions:

Individuals

Refers to single human beings, considered separately from their societal or familial roles or status.

Capital Contributions

Financial or other assets provided by owners or investors to a company, increasing its equity.

Capital Balance

The amount of funds contributed by owners or partners to a business, plus any retained earnings or subtracted losses, constituting the equity portion of the balance sheet.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.