Dana, HR Manager at a Small Company, Must Communicate to an Employee

question 128

Multiple Choice

Dana, HR manager at a small company, must communicate to an employee that his request for a raise cannot be fulfilled, considering his productivity rates. Which of the following lines would best serve as a buffer for this message?

• A) We would love to grant your request but your productivity is really not up to the mark this year.
• B) We have decided that, considering your productivity rate, we cannot give you the raise that you had requested.
• C) You are doing a great job out there and we would like to commend you on your performance.
• D) After receiving your request for a raise, we did a careful evaluation of your productivity levels over the course of the last year.

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Definitions:

Required Rate of Return

The minimum annual percentage return an investor expects to earn from an investment to consider it worthwhile.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual, exchange-traded, and closed funds.

Market Risk Premium

The additional yield investors anticipate from maintaining a portfolio with inherent market risk rather than opting for assets free of risk.

Required Rate of Return

The minimum annual percentage return investors expect or demand from an investment, considering the risk involved.