Which of the Following Statements About Specifying and Measuring Performance

question 4

Multiple Choice

Which of the following statements about specifying and measuring performance is true?

• A)Many firms rely heavily on financial performance measures
• B)One of the easiest to use measures for employee performance is a qualitative measure such as customer satisfaction.
• C)Organizations should look for ways to measure employee results not employee behavior.
• D)Organizations should take the same approach to measuring performance whether taking a long-term or short-term perspective.
• E)Traditional commissions focus on long-term performancE.

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Definitions:

Coupon Rate

The annual interest yield on a bond, displayed as a percentage of its principal value.

Tax Rate

The scale at which the government levies taxes on the financial gains of individuals or corporations.

Face Value

The nominal value printed on a bond or other financial instrument; it is the amount paid to the holder at maturity, though the market value can differ.

Weighted Average Cost of Capital (WACC)

The rate that a company is expected to pay on average to all its security holders to finance its assets, a key factor in capital budgeting decisions.