What Is a Key Disadvantage of Behaviourally Anchored Rating Scales

question 76

Multiple Choice

What is a key disadvantage of behaviourally anchored rating scales?

• A) They do not involve employee participation.
• B) They have low content validity.
• C) They can only be used in the public sector.
• D) They require considerable time and effort to develop.

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Definitions:

DuPont System

A financial analysis method that breaks down return on equity into three parts: profit margin, asset turnover, and financial leverage, to assess a company's financial performance.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by shareholders' equity.

Times Interest Earned

A ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its total interest expenses.