Angus Is Accused of Having a Restriction of Range Problem

question 2

Multiple Choice

Angus is accused of having a restriction of range problem in his evaluations of co-workers. What is most likely to be true about Angus?

• A) His ratings fluctuate dramatically over time.
• B) He tends to believe that friendly subordinates are also competent.
• C) He rates a negative performance more negatively after a succession of positive performances.
• D) He probably fails to make adequate distinctions among subordinates.

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Definitions:

Noncumulative Preferred Stock

Preferred shares that do not entitle the holder to claim dividends missed in the past if the company decides not to distribute dividends in a given year.

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which in turn reduces the price per share, making the stock more accessible to investors.

Basic Earnings Per Share

A measure of a company's profitability that shows how much of its profits are allocated to each share of common stock.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains unchanged.