Critical Incidents Method Is a Process in Which Managers and Employees

question 87

True/False

Critical incidents method is a process in which managers and employees jointly set objectives for the employees,periodically evaluate performance,and reward employees according to the results.

---

Definitions:

Inventory Turnover

A ratio indicating how often a company sells and replaces its stock of goods during a particular period, a measure of efficiency in managing inventory.

Current Ratio

Indicates the extent to which current liabilities are covered by those assets expected to be converted to cash in the near future; it is found by dividing current assets by current liabilities.

Obsolete

Refers to products, technologies, or methods that are out-of-date, no longer usable, or have been replaced by new versions.

Market Value Ratios

Relate the firm’s stock price to its earnings and book value per share.