The Recency Effect Is a Potential Rater Bias That Occurs

question 52

Multiple Choice

The recency effect is a potential rater bias that occurs when:

• A) the rater has done too many employee evaluations recently
• B) the employee has just recently started the job and is therefore given an improper evaluation
• C) the rater has just recently started the job and cannot fairly evaluate the employee
• D) the rater allows recent employee actions to unduly sway their performance evaluation
• E) performance standards have just recently been developed

Understand the principles underlying the calculation and interpretation of financial ratios.

Grasp the concept of risk in investment and its implications on expected returns.

Understand the conditions and documentation required for hedge accounting under U.S. GAAP.

Analyze the impact of foreign currency fluctuations on U.S. companies involved in international transactions.

---

Definitions:

Desires

Strong feelings of wanting or wishing for something to happen.

Behaviourism

A theory in psychology that focuses on observable behaviors rather than internal processes such as thoughts and feelings, emphasizing the effects of reinforcement on behavior.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual.

Response Tendencies

The habitual ways in which an individual reacts to a given situation or stimulus.