What Is the Name of the Rating Error That Leads

question 62

Multiple Choice

What is the name of the rating error that leads employees to believe that no aspect of their performance needs improvement?

• A) contrast error
• B) halo error
• C) horn error
• D) strictness error
• E) central tendency error

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Definitions:

Direct Private Long-term Debt Financing

A type of financing where companies borrow money directly from private investors, bypassing traditional bank loans and public markets.

Public Issues

The process by which a private company goes public by offering its shares to the public for the first time.

Registration Costs

Expenses associated with the process of registering a security with regulatory authorities (such as the SEC) before it can be offered for sale to the public, including legal, accounting, and printing fees.

General Cash Offers

A public offering in which securities are sold for cash to the general investing public.