When Performance Evaluation Is Based on Return on Investment, Managers

question 65

True/False

When performance evaluation is based on return on investment, managers will usually accept projects that yield less than the required rate of return.

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Definitions:

Directive

An instruction or order given by an authority, meant to guide actions or establish procedures within an organization or community.

Comprehensiveness

The characteristic of being thorough and encompassing most or all parts or facets of something.

Objectivity

The quality of being unbiased, unprejudiced, and impartial.

Clarity

The quality of being easily understood, free from ambiguity, and expressed in a straightforward manner.