One of the Major Disadvantages Associated with the So-Called Special

question 60

Multiple Choice

One of the major disadvantages associated with the so-called special performance test is that it

• A) is a poor measure of worker ability.
• B) fails to measure the employees' work motivation.
• C) fails to provide standard evaluation conditions for the workers.
• D) is subject to recency effect.
• E) is prone to opportunity bias.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated as sales divided by average accounts receivable.

Days' Sales in Receivables

A financial metric that estimates the average number of days it takes a company to collect payments after a sale has been made.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

Trend Indication

An analysis or estimate aimed at predicting the future direction of something, often based on past and present data.