When Supervisors Who Are Engaged in a Performance Rating Tend

question 12

Multiple Choice

When supervisors who are engaged in a performance rating tend to rate all employees either high or low, this problem is referred to as

• A)halo effect.
• B)bias.
• C)appraisal bias.
• D)central tendency.
• E)leniency/strictness.

Understand the impact of risk aversion on decision making.

Differentiate between various social decision schemes and their effects on group decisions.

Recognize the role and assumptions of intuition in the decision-making process.

Identify strategies to develop different cognitive abilities related to decision making.

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Definitions:

Investment Portfolio

An assortment of financial assets including stocks, bonds, commodities, cash, and equivalents, such as mutual funds and exchange-traded funds (ETFs).

Preferential Tax Treatment

Special tax rules that result in a lower tax rate or beneficial tax conditions for certain types of income or taxpayers.

Accumulated Straight-Line Depreciation

The total amount of depreciation expense recorded for an asset over its useful life, calculated using the straight-line method.

Tax Bracket

The range of income taxed at a particular rate under a progressive tax system, with different brackets for different income levels.