Incentives Are

question 11

Multiple Choice

Incentives are:

• A)the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.
• B)the devices used to reward appropriate managerial behavior.
• C)the manner in which decisions are made and work is performed within the organization.
• D)the norms and value systems that are shared among the employees of an organization.

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Definitions:

Quarterly Compounded

Interest that is calculated and added to the principal every three months, increasing the amount on which subsequent interest calculations are based.

Quarterly Compounded

Refers to the calculation of interest that is added to the principal balance of an investment or loan four times a year.

Equivalent Effective Rate

A comparable interest rate that equates the interest earned on different investments or loans over the same time period, taking into account the effects of compounding.

Face Value

The original value of a financial instrument as stated on the instrument itself, without accounting for interest or market value fluctuations.