Which of the Following Statements Is(are) True Regarding Performance Measures

question 39

Multiple Choice

Which of the following statements is(are) true regarding performance measures?
(A) In general, objective performance measures are better than subjective performance measures.
(B) In general, the use of multiple performance measures is better than the use of single performance measures.

• A) Only A is true.
• B) Only B is true.
• C) Both of these are true.
• D) Neither of these is true.

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Definitions:

Defined Contribution Plan

A type of retirement plan where the amount contributed to the plan is specified, but the benefit received at retirement depends on the plan's investment performance.

Endowment Fund

A fund established by a foundation, institution, or individual, where the principal amount is kept intact while the investment income is available for use.

Variable Annuity

An insurance product that provides future payments to the holder, with the payouts varying depending on the performance of the investment options chosen.

Defined Contribution

A type of retirement plan in which the amount contributed to the plan is specified, but the future benefit amount is not guaranteed, depending on investment returns.