In a Performance Appraisal, the Term Validity Refers to Whether

question 79

True/False

In a performance appraisal, the term validity refers to whether the appraisal measures all aspects of performance, both relevant and irrelevant.

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Definitions:

Bankruptcy

A legal proceeding involving a person or business that is unable to repay their outstanding debts, leading to the assets being allocated to creditors.

Indirect Costs

Expenses that are not directly attributable to a specific product or activity but are necessary for the business's operation, such as utilities or administrative salaries.

Financial Distress

A scenario in which a corporation is unable to fulfill or struggles with settling its debts to those it owes money.

Earnings Per Share

A financial ratio indicating the amount of profit attributed to each outstanding share of a company's common stock, calculated as net income divided by the number of shares.