The Omission of Pertinent Performance Criterion from a Performance Appraisal

question 82

True/False

The omission of pertinent performance criterion from a performance appraisal form is referred to as criterion contamination.

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Definitions:

Treasury Stock

Shares that were issued and later reacquired by the company, reducing the amount of outstanding stock.

Par Common Stock

The nominal value assigned to share of common stock, as specified in the corporate charter, which represents the minimum price shares can be issued.

Cost Method

An accounting method used to value investments, where the investment is recorded at its acquisition cost without recognizing any changes in market value.

Stock Dividend

A company's distribution of extra shares to its shareholders, as an alternative to cash payouts.