A Performance Appraisal System Is Valid Only If It _____________

question 72

Multiple Choice

A performance appraisal system is valid only if it _____________.

• A) provides consistent results each time it is used
• B) is statistically robust
• C) is used in a wide cross-section of industries
• D) is used across hierarchical levels in an organization
• E) actually measures people on relevant job content

---

Definitions:

Discounted Value

The present value of a future amount of money or a series of cash flows, adjusted for time value of money.

Annuity

A financial product that pays out a fixed stream of payments to an individual, usually used as an income stream in retirement.

Present Value

The immediate value of a prospective amount of money or cash flow series, determined by a specific rate of return.

Future Amount

The predicted total value of an asset or investment at a specific future date, considering factors like interest rates or earnings.