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Gino, a CEO, is concerned that his managers are purposely misusing appraisal rating scales to make it look as though their teams are very effective. Which action should Gino take to fix the problem?
Convertible Bond
A bond that can be converted into a specified number of shares of stock at the owner’s discretion.
Conversion Price
The predetermined price at which convertible securities can be converted into common stock.
Conversion Ratio
A ratio set at the time bonds are issued; determines the number of shares that can be exchanged for a bond.
Bond Rating
An evaluation made by credit rating agencies regarding the credit worthiness of a corporation's or government's debt issues, reflecting the likelihood of default.
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