James,the Production Manager of Zenfax Inc

question 78

Multiple Choice

James,the production manager of Zenfax Inc.,thinks performance appraisal information from peers is a less reliable source than other sources of information.However,Ron,a sales manager in the company,thinks peers give valuable information for appraisal.Whose argument is most likely to be correct and why?

• A) James is right because information from peers does not add value to the assessment of performance.
• B) Ron is right because peers are comfortable rating employees for decisions that may affect themselves.
• C) James is right because peers fail to meet the expectations of bringing a different perspective to the evaluation.
• D) Ron is right because peers have expert knowledge of job requirements.
• E) James is right because peers may not have enough opportunity to observe an employee in day-to-day activities.

---

Definitions:

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Liquidity

The ease with which an asset or security can be converted into ready cash without affecting its market price.

Preferred Shareholders

Investors who own preferred shares in a company, which often grant them benefits such as fixed dividend payments and priority over common shareholders in case of liquidation.

Marketable Securities

Liquid financial instruments that can be quickly converted into cash at a reasonable price.