What Is the Limitation of Goal Setting

question 29

Multiple Choice

What is the limitation of goal setting?

• A) When the company sets goals for employees, rather than having employees set their own goals, the goals tend to be set somewhat higher.
• B) Employees report low levels of motivation when they have set difficult but achievable goals.
• C) Self-set goals have the effect of decreasing employees' acceptance of the goal.
• D) This theory cannot be applied to every performance dimension of every task.

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Definitions:

Discount Rate

The discount rate applied in the discounted cash flow method to calculate the current value of anticipated cash flows.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows over a period of time.

Profitability Index

A capital budgeting tool that measures the relative profitability of an investment by dividing the present value of its future cash flows by the initial investment cost.

Present Value

The present value of a future amount of money or series of cash flows, based on a given return rate.