An Effective Performance Evaluation System Will ________

question 187

Multiple Choice

An effective performance evaluation system will ________.

• A) promote goal congruence and coordination
• B) provide feedback
• C) communicate expectations
• D) all of the above

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Definitions:

Reinvested

Pertains to the act of putting earnings or profits back into the business or project instead of paying them out as dividends.

Discount Rate

The interest rate used to discount future cash flows to their present value, reflecting the opportunity cost of capital.

Internal Rate Of Return

A financial metric used to estimate the profitability of potential investments, calculated as the rate that makes the net present value of all cash flows from a particular project equal to zero.

Net Present Value

A calculation of the present value of cash inflows minus the present value of cash outflows over a period of time, used in capital budgeting.