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Scenario A. Suppose that your employee Umberto has been having trouble with the paperwork he must do for his job. Your goal is for the employee to improve his performance; i.e. decrease his rate of errors. You are considering two approaches:
1. Option 1 is to spend time with Umberto every day helping him with his job. This is an appealing option to Umberto because he appreciates the attention and sees it as a positive reward.
2. Option 2 is to tell Umberto that has now lost his incentive option until his performance improves.
3. Option 3 is to tell Umberto that you are not taking away his incentive option for the coming quarter provided he makes improvements.
-Suppose you use option 1 and spend time with Umberto every day and his work improves.When you stop meeting with employee daily,his performance declines.How might you explain this change?
Cost Of Borrowing
The total expense that a borrower pays to secure and utilize a loan, including interest rates, fees, and other charges.
Revolving Loan
A loan that provides the borrower with the ability to draw down, repay, and re-borrow funds up to a designated amount over a given period.
Prime Interest
The interest rate that commercial banks charge their most creditworthy customers, often used as a reference rate for loans.
Float
The time difference between writing a check and the actual withdrawal of funds from the bank account, or in securities trading, it's the number of shares available for trading by the general public.
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