If a Performance Appraisal System Faces a Legal Challenge Because

question 103

True/False

If a performance appraisal system faces a legal challenge because there is evidence of disparate impact on protected classes,management could defend against this challenge by showing that supervisors were given wide discretion in how they applied evaluation criteria.

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Definitions:

Financing Activities

Transactions involving the flow of cash between a company and its owners or creditors, typically relating to equity and long-term debt.

Treasury Stock

Shares that were issued and subsequently bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Cash Collected

The total amount of money received by a company from its various activities, such as sales, services, or borrowings.

Customers

Individuals or entities that purchase goods or services from a company, contributing to the company's revenue.