Actual Performance Falls Far Short of Planned Goals, Yet a Manager

question 105

Multiple Choice

Actual performance falls far short of planned goals, yet a manager takes no action.Assuming this manager is a reasonable person and is not mistaken, what is the most likely cause of his inaction?

• A)He does not trust the data.
• B)He does not consider the deviation significant.
• C)He does not trust the goals that were set.
• D)He does not believe in corrective action.

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Definitions:

Dividend

A distribution of a portion of a company's earnings decided by the board of directors to its shareholders.

Risk Aversion

A preference for avoiding risk, where individuals or entities prioritize certainty and are reluctant to engage in investments with uncertainty.

Expected Return

The anticipated value or profit from an investment over a given period of time.

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating the level of risk associated with the stock’s price changes.