Which Statement Associated with Management by Objectives (MBO)is NOT Accurate

question 13

Multiple Choice

Which statement associated with Management by Objectives (MBO) is NOT accurate?

• A) Goals should be determined jointly between a manager and an employee.
• B) To be effective,goals should be realistic.
• C) Broad general goals are congruent with the MBO approach.
• D) Regular evaluation and feedback against targets is critical.

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Definitions:

Earnings Reinvested

Profits that are not paid out as dividends but are instead reinvested in the business to fund growth or pay down debt.

Retention Rate

A metric indicating the percentage of earnings not paid out as dividends but retained by the company for reinvestment.

Plowback Ratio

The proportion of the firm’s earnings reinvested in the business (and therefore not paid out as dividends). The plowback ratio equals 1 minus the dividend payout ratio.

Expected Growth Rate

The anticipated rate at which an investment, economy, or other financial entity will grow over a certain period.