When Setting Performance Measures for Incentive Systems,what Can We Say

question 94

Multiple Choice

When setting performance measures for incentive systems,what can we say about the best measures?

• A)They are quantitative,simple to understand,and show a clear relationship to improved performance.
• B)They are qualitative,flexible,and create competition between employees.
• C)They are those measures that allow employers to "ratchet up" standards and base rewards on qualitative standards.
• D)They are unattainable in order to inspire increased levels of performance.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of shareholders.

Foreign Currency Transaction

A transaction that involves the exchange of currencies or the undertaking of financial obligations denominated in a currency other than the entity’s functional currency, requiring conversion and possibly leading to foreign exchange gains or losses.

Spot Rate

The current market price of a financial instrument or commodity available for immediate purchase and delivery.

Receivable

An amount owed to a company by its customers or other parties for goods or services delivered.