Which Statement About Performance Reports and Variances Is FALSE

question 103

Multiple Choice

Which statement about performance reports and variances is FALSE?

• A)They are most effective when managers use them positively to encourage employees to improve performance.
• B)When they are used negatively,employees will resist and undermine these techniques.
• C)These tools should be used to find weaknesses and deficiencies in employees' performance.
• D)These tools should be used constructively to influence behavior.

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Definitions:

Call Option

A fiscal arrangement that permits the owner to optionally buy a stock, bond, commodity, or another asset at a pre-specified price within a certain period, without being obliged to do so.

Specified Price

A designated price set for the execution of a transaction in securities, contracts, or a commercial agreement.

Options Contract

A financial agreement granting the buyer the opportunity, but not the obligation, to buy or sell an asset at a specific price on or before a certain date.

Forward Contract

A personalized agreement between two individuals to purchase or sell a property at a designated future time at a price determined currently.