The First Step in the Factor Rating Method for Evaluating

question 14

Multiple Choice

The first step in the factor rating method for evaluating location alternatives is what?

• A) select a scale by which to evaluate each alternative relative to each factor
• B) evaluate each alternative relative to each factor
• C) select the alternative with the highest score
• D) identify dominant factors
• E) assign weights to factors reflecting the importance of each factor relative to the other factors

Understand the importance of fairness and attainability in incentive pay plans.

Analyze the suitability of different incentive plans for various types of jobs and employee roles.

Appreciate the impact of incentive plans on employee motivation and organizational success.

Understand how incentive pay can be linked to performance appraisals.

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Definitions:

Price-earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate the attractiveness of a stock.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price, serving as a measure of return on investment.

Earnings Per Share

A financial ratio that calculates the portion of a company’s profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Market Value

The present cost at which a good or service is available for purchase or sale in the market.