Which of the Following Statements About Performance Measures Is FALSE

question 102

Multiple Choice

Which of the following statements about performance measures is FALSE?

• A) Organizational goals without performance measures do not motivate managers.
• B) Every performance measure used to evaluate employees should be consistent with organizational goals.
• C) An ideal management control system should include at least one performance measure related to every goal.
• D) Performance measures become more specific at higher levels of the organization.

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Definitions:

Market Exit

Market exit involves a company or business ceasing operations or leaving a particular market or industry.

Competitive Price-searcher

A firm that participates in a market where prices are determined through competition, yet possesses enough market power to influence prices by adjusting its output.

Restaurant Industry

A sector of the economy comprised of establishments primarily engaged in preparing meals, snacks, and beverages for immediate consumption by the public.

Entry Barriers

Obstacles that make it difficult for new entrants to enter a market, potentially including high initial costs, regulatory hurdles, and strong incumbents.