A Canadian Bank Has, for Several Years, Established Formal Promotion

question 76

Multiple Choice

A Canadian bank has, for several years, established formal promotion procedures and published these procedures so all employees are aware of the criteria by which promotions are rewarded.What are the benefits to the bank of doing this?

• A)Replacement summaries are better utilized.
• B)A greater number of qualified employees are likely to be considered for openings and managers have more discretion in promotion decisions.
• C)A greater number of qualified employees are likely to be considered for openings and promotion becomes more closely linked to performance for employees.
• D)Managers have greater autonomy and more discretion in promotion decisions.
• E)None, there are no benefits.

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Definitions:

Receivables Financing

A form of financing where a company uses its accounts receivable as collateral to obtain a loan or advance, improving cash flow.

Variable Cost Per Unit

The cost that varies with the level of output or production, such as materials and labor, calculated on a per unit basis.

Monthly Interest Rate

Monthly interest rate refers to the percentage of interest that is charged or earned on a loan or investment for each month.

Net 30 Policy

A payment term that indicates the buyer must pay the full amount due within 30 days of the invoice date.