The Extent to Which the Performance Measure Gives Guidance to Employees

question 48

Multiple Choice

The extent to which the performance measure gives guidance to employees about what is expected of them refers to which criterion associated with effective performance measures?

• A)Reliability
• B)Validity
• C)Specific feedback
• D)Acceptability
• E)Fit with strategy

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Definitions:

Adjusted Subsidiary Value

An evaluation metric that adjusts the value of a subsidiary’s assets and liabilities to their fair market value.

Investment Account

An account held at a financial institution into which individuals deposit funds for the purpose of buying securities and other investment assets.

New Shares

Additional shares of stock issued by a company to raise capital or in connection with a stock split.

Noncontrolling Interest

A minority stake in a company that is not enough to exert control over its operations, often less than 50% of the voting shares.