Adam Evaluates Everyone in His Department as "Average"-No One Is

question 53

Multiple Choice

Adam evaluates everyone in his department as "average"-no one is a great employee, but no one is a bad employee, either.Adam is exhibiting a distributional error known as ________________ in his evaluations.

• A)leniency
• B)severity
• C)central tendency
• D)inflation
• E)ranking

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Definitions:

Transaction Costs

Expenses incurred when buying or selling securities, including commissions, taxes, and other fees.

Stock Dividend

A stock dividend is a payment made in the form of additional shares rather than cash, proportional to the number of shares already owned.

Market Value

Market value refers to the current price at which an asset or service can be bought or sold in the marketplace.

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, reinvestment in the business, or to pay debt.