From an Efficiency Perspective of PAT,what Approach Should Be Adopted

question 52

Multiple Choice

From an efficiency perspective of PAT,what approach should be adopted when managers are approaching retirement?

• A) Increase the percentage of their remuneration that is paid out as bonuses based on accounting profit in order to keep them motivated to work hard.
• B) Use a market-based bonus scheme.
• C) Make them redundant as early as possible.
• D) Link an additional element of the manager's superannuation package to profits.

Comprehend expectancy theory and its components.

Recognize how motivation theories apply to workplace scenarios.

Identify the measurement scales for elements within expectancy theory.

Distinguish between different goal types and their purposes.

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Definitions:

Closed at Par

A situation where a bond or preferred stock is bought or sold at its face value.

Dividend Yield

The Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price, providing investors with insight into the income generated from an investment in its shares.

Price Appreciation

An increase in the value of an asset or investment over time.

Rate of Return

A measure of the profitability of an investment, calculated as a percentage of the original cost of the investment.