Rachel Gives Karen a Good Rating in a Performance Appraisal

question 22

Multiple Choice

Rachel gives Karen a good rating in a performance appraisal because Karen once handled a difficult customer by empathizing with him. Since that incident, Rachel believes that Karen is the smartest and most efficient employee in the organization. Even though Karen has multiple positive attributes to her personality, Rachel makes an overall impression of Karen based on her quality of empathy. This is an example of the

• A) bandwagon effect.
• B) contrast effect.
• C) halo effect.
• D) decoy effect.

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Definitions:

Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Accounts Receivable Turnover

This ratio measures how efficiently a company collects revenue from its customers by dividing total sales by the average accounts receivable during a specific period.

Credit Sales

Sales transactions where the payment is deferred to a future date, essentially extending credit to the purchaser.

Credit Period

The amount of time allowed by a seller for a buyer to pay for goods or services received, typically expressed in days.