The Halo Effect Occurs When a Rater Allows a Single

question 26

True/False

The halo effect occurs when a rater allows a single prominent characteristic of an employee to influence his/her judgment on each separate item in the performance appraisal.

---

Definitions:

Unrealized Gains

Increases in the value of assets that a company holds which are not realized through a sale transaction.

Marketable Trading Investments

Securities that a company holds primarily for the purpose of trading and expects to sell in the short term to generate profit.

Unrealized Gain

Profit that has been achieved on paper due to an increase in the value of an investment but has not yet been realized through a sale.