How Efficiently a Venture Controls Its Expenses and Uses Its

question 3

True/False

How efficiently a venture controls its expenses and uses its assets and debt is evaluated with profitability and efficiency ratios.

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Definitions:

The Halo Effect

A cognitive bias where an observer's overall impression of a person, company, brand, or product influences their feelings and thoughts about that entity's character or properties.

Leniency Errors

A bias in assessment or judgment processes where the evaluator tends to consistently rate others more favorably than warranted.

Interviewer Illusion

A cognitive bias occurring when interviewers overestimate their ability to evaluate interviewees accurately.

360-Degree Feedback

A performance appraisal system where an employee receives confidential feedback from supervisors, peers, and subordinates, often including self-assessment.