One of Your Managers Returns from a Management Seminar Eager

question 92

Multiple Choice

One of your managers returns from a management seminar eager to use a relative judgment system for performance appraisals.He asks you for your opinion about the value of such systems.It would be most accurate for you to state that relative judgment systems:

• A) require supervisors to differentiate between employees.
• B) minimize employee conflict regarding performance assessment.
• C) clarify performance differences between similarly ranked employees.
• D) force managerial judgments based exclusively on performance standards.

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Definitions:

Depreciation Expense

Methodically spreading out the expense of a physical asset across its period of usability.

Capital Lease

A lease classified as a purchase by the lessee, whereby the lessee records the leased asset as an owned asset on the balance sheet.

Bargain Purchase Option

A lease agreement provision allowing the lessee to purchase the leased asset at a price significantly lower than its expected fair market value at the end of the lease term.

Long-term Liability

A long-term liability is a financial obligation of a company that is due beyond one year, such as bonds payable, long-term leases, and pension obligations.