The Administrative Role of Performance Appraisals Often Creates Stress for Managers

question 88

True/False

The administrative role of performance appraisals often creates stress for managers doing the appraisals and the employees being evaluated, because the rater is placed in the role of judge.

Understand the significance of forecasting and innovation in business strategy.

Grasp different Internet business models and their basis of competitive advantage.

Know the components of a SWOT analysis and its role in strategic management.

Understand the strategic management process and the importance of adaptability and communication in strategy implementation.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own use rather than selling those resources.

Explicit Costs

Direct, out-of-pocket payments for resources employed by firms for production, such as wages or rent.

Accounting Profit

The net income a company reports on the financial statements, calculated by subtracting total expenses from total revenues.

Economic Profit

The variance between what a business earns in total and what it spends, counting both actual expenses and notional costs.