Which Statement Is FALSE About Performance Metrics

question 109

Multiple Choice

Which statement is FALSE about performance metrics?

• A)The cost benefit criterion leads companies to rely on imperfect performance metrics.
• B)The more a manager's reward depends on a performance metric,the more incentives the manager has to take actions to maximize that measure.
• C)Top management should define the performance metric to promote goal congruence and base enough reward on it to achieve managerial effort.
• D)The more uncontrollable factors affect a manager's reward,the less risk the manager bears.

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Definitions:

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Consultative

A sales approach where the salesperson acts as an advisor, seeking to understand the customer's needs and recommending products that meet those needs.

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The shared values, beliefs, and practices that shape the social and psychological environment of a business or organization.

Skydiving Team

A group of individuals who participate together in skydiving activities, often performing formations and maneuvers while freefalling.