Although Jason Tends to Goof Off at His Job Most

question 42

Multiple Choice

Although Jason tends to goof off at his job most of the year, he always works extremely hard to impress his boss during the 6 weeks before his annual evaluation. He is apparently trying to take advantage of ______.

• A) primacy effect
• B) recency effect
• C) fundamental attribution error
• D) actor-observer effect

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Definitions:

Capacity

Maximum output of the operation of an organization.

Residual Income

A measure of net income that remains after subtracting a charge for the capital cost involved in generating that income.

Weighted Average Cost of Capital

A financial metric that calculates a firm's cost of capital, weighted by the proportion of equity and debt financing.