Suppose the Performance Reviews That Salespeople Receive Are Based Solely

question 80

Multiple Choice

Suppose the performance reviews that salespeople receive are based solely on sales revenue to the exclusion of other important factors. Which of the following would these performance evaluations suffer from?

• A) criterion contamination
• B) lack of reliability
• C) criterion deficiency
• D) lack of criterion relevance

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Definitions:

Promised Yield

The return an investor is told to expect from a bond or other fixed-income security, assuming it is held to maturity and all payments are made as scheduled.

Bond A

A financial security that represents a loan made by an investor to a borrower, typically corporate or governmental, which pays interest at predetermined intervals.

Hedging

A strategy used in finance to reduce the risk of adverse price movements in an asset, typically by taking an offsetting position in a related security.

Stock Price Declines

A situation where the market value of a company's shares decreases over a period of time.