In Rating, the "Halo Effect" Refers to the

question 50

Multiple Choice

In rating, the "halo effect" refers to the

• A) tendency to make ratings too high.
• B) influence of one rater's results on another rater.
• C) influence of a general impression of a person on the rating of specific characteristics.
• D) tendency not to be too hard in rating people one doesn't like.
• E) tendency to use the middle points on the scale for rating all characteristics.

---

Definitions:

Financial Distress

An instance wherein a business faces challenges or fails to satisfy its monetary debts to creditors.

Trade-off

The process of sacrificing one quality, quantity, or property to gain another.

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered or used but not yet paid for.