GlaxoSmithKline's Spending of $6 Billion in 2012 on Research and Development

question 57

True/False

GlaxoSmithKline's spending of $6 billion in 2012 on research and development of new drugs is a capital budgeting decision but not a financing decision.

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Definitions:

Criterion Deficiency

A situation where the criteria used for evaluating performance do not fully capture or reflect the actual job performance.

Criterion Contamination

Refers to the situation where performance appraisals include factors irrelevant to the employee's actual job performance.

Criterion Relevance

The degree to which a criterion used in evaluating outcomes or performance accurately reflects the essential aspects of a job or objective.

Criterion Deficiency

The part of the expected job performance that is not measured by the performance evaluation system in place.