The GE "Stop-Light" Evaluation Method Is a Very Objective Approach

question 319

True/False

The GE "stop-light" evaluation method is a very objective approach because GE feels there are too many possible errors if it tries to use subjective criteria for judging "attractiveness" or "strength."

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Definitions:

Salaries

Employee pay based on a specified amount rather than an hourly rate.

Interest

The cost of borrowing money or the return on invested funds, typically expressed as a percentage rate over a period of time.

Capital Account

An account used to summarize the owner's equity in a business, including funds contributed by investors or profits retained in the business rather than distributed.

Income Sharing

A financial arrangement where profits or revenues are distributed among participants or partners, often seen in partnerships and joint ventures.