The Halo Effect Occurs When a Rater Allows a Single

question 33

True/False

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

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Definitions:

Cash Dividends

Payments made by a company to its shareholders from its profits or reserves.

Date of Record

The date of record is a cut-off date set by a corporation to determine which shareholders are eligible to receive a dividend or distribution.

Liability

An obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer of assets, provision of services, or other yielding of economic benefits in the future.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.