Which of the Following Statements Reflects the Use of Benchmarking

question 147

Multiple Choice

Which of the following statements reflects the use of benchmarking in a performance evaluation system?

• A) A company uses internal controls to prevent theft and wastage.
• B) A company initiates innovative production technology.
• C) A company compares its performance metrics with other companies in its industry.
• D) A company attracts top talent from other companies using stock options and other financial rewards.

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Definitions:

Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specific quantity of an underlying asset at a set price within a specified time.

American Call-Option

A financial contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other instruments at a specified price within a specific time period.

Dividend-Payout Policies

Strategies adopted by companies to decide the size and pattern of cash dividends to shareholders.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.