Which of the Following Aspects of a Performance Evaluation System

question 180

Multiple Choice

Which of the following aspects of a performance evaluation system best describes when targets are compared to actual results?

• A) Communicating company's expectations
• B) Motivating managers
• C) Promoting goal congruence
• D) Providing feedback

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Definitions:

Acid-Test Ratio

A financial metric that measures a company's immediate liquidity by comparing its most liquid assets to its current liabilities.

Quick Ratio

A liquidity ratio that measures a company's ability to meet short-term obligations with its most liquid assets.

Gross Margin Ratio

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, illustrating how effectively a company uses labor and supplies in production.

Gross Profit

The difference between revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.