Outcome-Based Performance Appraisal Systems Are More Likely To

question 80

Multiple Choice

Outcome-based performance appraisal systems are more likely to:

• A) lead to a "results at any cost" mentality.
• B) require significant time to establish criteria.
• C) face managerial and employee resistance.
• D) cause legal difficulties because of unclear standards.

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Definitions:

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are expected to yield returns over a period of time.

Risk Character

A term describing the unique attributes and level of risk associated with an investment or financial decision.

Abandonment Option

The abandonment option is a right, but not the obligation, to abandon an investment or project if it becomes unprofitable or risks exceed anticipated benefits.

Independent

Free from outside control or not depending on another's authority or subject to another's influence.