Thomas Had Been Consistently Meeting All His Deadlines and Performance

question 23

Multiple Choice

Thomas had been consistently meeting all his deadlines and performance standards over the past year,except for the last six weeks,when he was struggling with health issues.Thomas's manager turned in a poor performance appraisal based on his performance over the last month.Which of the following errors in performance appraisals does this case reflect?

• A)Leniency
• B)Central tendency
• C)Halo effect
• D)Recency

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Definitions:

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, reflecting the capital invested by the owners plus retained earnings.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often with dividend payment preference.

Deductible Corporate Expense

Expenses that a corporation can subtract from its gross income to reduce its taxable income, according to tax laws.

Stock Dividend

A dividend payment made by a company to its shareholders in the form of additional shares rather than a cash payout.