Last Year Your Performance Was Not Very Good and Your

question 8

Multiple Choice

Last year your performance was not very good and your performance rating was below average, but this year you have done very well by exceeding your performance goals.To your surprise, your boss gives you just an average performance rating.What error has your boss most likely committed?

• A)Horn error
• B)Halo error
• C)Severity error
• D)Spillover error

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Definitions:

Liquidity

A measure of how easily assets can be converted into cash without affecting their market price.

Profitability

An indicator of how well a company is able to produce profit through its business activities.

Liquidity

A measure of how easily assets can be converted into cash or cash equivalents without significantly altering their value, essential for meeting short-term obligations.

Asset Management

A methodical approach to the creation, operation, upkeep, and disposition of assets that ensures cost efficiency.