Two of the Most Important Issues Regarding How to Conduct

question 100

Multiple Choice

Two of the most important issues regarding how to conduct a performance appraisal are

• A) whether the appraiser takes a judgmental or developmental orientation and whether pay is linked to performance.
• B) where the appraisal takes place and who is present at the time.
• C) who does the appraisal and the frequency of the appraisal.
• D) how long the appraisal lasts and how often it occurs.
• E) whether the appraisal uses past or current information and whether one or many raters are used.

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Definitions:

Option Contract

A financial contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.

Derivative Security

A financial instrument whose value is based on the value of another asset.

Economic Exposure

Long-term financial risk arising from permanent changes in prices or other economic fundamentals.

Cross-Hedging

Hedging an asset with contracts written on a closely related, but not identical, asset.