When Investors and Creditors Make Investment and Credit Decisions, They

question 56

Multiple Choice

When investors and creditors make investment and credit decisions, they need information to assist them in assessing future cash receipts.Their focus is on assessing the potential of generating

• A)a return of investment of capital
• B)a return on investment of capital
• C)both a return of and a return on investment of capital
• D)neither a return of nor a return on investment of capital

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Definitions:

Interactional Justice

Refers to the perceived fairness of the interpersonal treatment individuals receive from decision-makers, including respect and propriety in communication.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests and best practices from other companies.

Outcome Fairness

The perception among employees that the outcomes they receive from the workplace are fair, equitable, and just, relating to decisions about rewards, promotions, or layoffs.

Involuntary Turnover

Occurs when an employer initiates the termination of an employee's contract for various reasons, such as underperformance or restructuring.