When Thinking About the Progression of Individual Effort Leading into Individual

question 38

Multiple Choice

When thinking about the progression of individual effort leading into individual performance, we see that an objective performance evaluation system plays a large role. Which individual element also plays an important role?

• A) personality
• B) ethics
• C) ability
• D) needs
• E) opportunity

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Definitions:

Residual Income

The net income that exceeds the minimum required return on investment or capital; often used as a performance measure in managerial accounting.

Investment Opportunity

An option to allocate resources with the expectation of generating a return or profit in the future.

Turnover

In business, refers to the rate at which employees leave a company and are replaced by new hires; can also refer to the total sales in a given period.

Turnover

A financial metric indicating the rate at which a company's inventory is sold and replaced over a period.