Which of the Following Performance Measures Cannot Result in Dysfunctional

question 87

Multiple Choice

Which of the following performance measures cannot result in dysfunctional behavior?

• A) price variance
• B) quotas
• C) ROI
• D) net income
• E) all of the above can result in dysfunctional behavior

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Definitions:

Rate of Return

The gain or loss on an investment over a specific period, expressed as a percentage of the investment's initial cost.

Debt Ratings

Assessments provided by rating agencies that evaluate the creditworthiness of debt issuers and their financial instruments.

Default Risk

Default risk is the chance that a borrower will be unable to make the required payments on their debt obligations.

Interest Rate Risk

The risk of loss to an investor from changes in the price of a bond that arise from changes in the market interest rate. Also called price risk and maturity risk.