When a Rater Compares People Against One Another Instead of Using

question 32

Multiple Choice

When a rater compares people against one another instead of using a set standard, he or she is committing a _____ error.

• A) contextual
• B) halo
• C) horns
• D) contrast
• E) distributional

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Definitions:

Future Cash Flows

The projected income and expenditures that a company expects to generate over a forthcoming period.

Legal Documents

Official papers that indicate agreement to terms, rights, and responsibilities, enforceable by law.

Collateralized

Secured by an asset or property as a guarantee to repay a loan.

Amortized

The process of gradually reducing a debt through regular payments over time, which include both principal and interest components.