Earnings Per Share

question 47

Multiple Choice

Earnings per share:

• A)will increase if net income increases and the number of shares outstanding decreases.
• B)will increase if net income decreases and the number of shares outstanding increases.
• C)is defined as the addition to retained earnings divided by the number of shares outstanding.
• D)is the total amount of dividends paid per year on a per share basis.
• E)must increase at the same rate as the net income.

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Definitions:

Halo Error

A bias in performance appraisals where an evaluator's overall impression of an individual, positive or negative, influences the assessment of specific traits or behaviors.

Appraisal Politics

The influence of personal agendas, biases, and power dynamics within the performance appraisal process, often affecting the fairness and accuracy of evaluations.

Performance Appraisal

The process by which an employee's job performance is evaluated, typically annually, by their supervisor, encompassing feedback on achievements and areas for improvement.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data.