The Performance Evaluation System Should Provide Incentives to Segment Managers

question 37

Multiple Choice

The performance evaluation system should provide incentives to segment managers for coordinating the activities of the subunits and directing them toward the overall company goals.Which of the following performance measurement goals has been described by this statement?

• A) motivating segment managers
• B) promoting goal congruence
• C) providing feedback
• D) benchmarking

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Definitions:

Stocks

Shares of ownership in a company, giving shareholders a claim on the company’s earnings and assets.

Sarbanes-Oxley Act

A law passed by U.S. Congress in 2002 aimed at protecting investors from fraudulent financial reporting by corporations.

Corporate Responsibility

This term refers to the self-imposed obligation of companies to act in a manner that is socially and environmentally beneficial.

Financial Statements

Formal records of the financial activities and position of a business, person, or entity, presenting the financial performance over a specific period.