In Assessing the Performance of a Manager of a Profit

question 41

Multiple Choice

In assessing the performance of a manager of a profit centre, which of the following would be an appropriate measure?

• A) Net profit margin
• B) Income from operations
• C) The centre's budget with actual performance
• D) All of the above

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Definitions:

Employee Stock Ownership Plan

A program that provides a company's workforce with an ownership interest in the company, usually in the form of stock options or shares.

Stock Options

Financial instruments that give an employee the right to buy or sell the company's stock at a predetermined price within a specific period.

Scanlon Plan

A participative management approach that focuses on improving productivity and sharing the resulting cost savings with employees.

Collective Stock Options

A form of employee incentive where groups of workers are granted options to buy company stock at a discounted price.