The Following Are All Prerequisites for Linking Performance and Reward

question 10

Multiple Choice

The following are all prerequisites for linking performance and reward except:

• A) Managers need to develop and communicate performance standards to employees
• B) Managers need to implement the same rewards for all employees
• C) Managers need valid and accurate performance ratings with which to compare employees
• D) Managers need to determine the relative mix of individual versus team contributions to performance then reward accordingly
• E) Managers should use the performance ratings to differentially allocate rewards among employees

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Definitions:

Current Ratio

A financial ratio that gauges a firm's capacity to meet its short-term debts or obligations due within the next year.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and receivables).

Working Capital

Current assets less current liabilities.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.