Behavioral Contracts Must Include

question 128

Multiple Choice

Behavioral contracts must include.

• A) a summary of the functional assessment; the target behavior; and the consequences for its occurrence and non-occurrence.
• B) vocal descriptions of how the behavior is to be measured; the consequences for its occurrence and non-occurrence; the contract manager; and the target behavior.
• C) written descriptions of how the behavior is to be measured; when behavior must occur; the consequences for its occurrence and non-occurrence; the contract manager; and the target behavior.
• D) a summary of the functional assessment; written descriptions of how the behavior is to be measured; when behavior must occur; the contract manager; and the target behavior.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

EBITDA Coverage Ratio

Similar to the times-interest-earned ratio, but it recognizes that many firms lease assets and also must make sinking fund payments. It is found by adding earnings before interest, taxes, depreciation, and amortization and lease payments, then dividing this total by interest charges, lease payments, and sinking fund payments over 1 minus the tax rate.

TIE

Times Interest Earned, a financial metric indicating how well a company can meet its interest obligations based on current earnings.

DSO

Days Sales Outstanding, a measure of the average number of days that a company takes to collect payment after a sale has been made.