Effective Performance Management Can

question 40

Multiple Choice

Effective performance management can:

• A) tell top performers that they are valued.
• B) encourage communication between managers and their employees.
• C) establish uniform standards for evaluating employees.
• D) help the organization identify its strongest performers.
• E) All of the choices are correct.

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Definitions:

Weighted Average Cost

Reflects the average cost per unit of inventory, factoring in all costs of items purchased at various prices.

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake.

Debt

A sum of money lent by one party to another, with the agreement it will be repaid later, typically with additional interest.

Financial Leverage

Taking advantage of borrowed finances to raise the possible outcomes of an investment.