A Group of Students Watch a Videotape of Two Managers

question 99

Multiple Choice

A group of students watch a videotape of two managers interacting with their subordinates at a customer service desk in a department store. Students see one of the managers act in a friendly and respectful manner towards all the employees. The other manager is less friendly but still respectful towards the employees. What concept would explain the more positive ratings on other dimensions for the friendly manager compared with the less friendly manager?

• A)The central tendency error
• B)The halo effect
• C)The horns effect
• D)The leniency effect

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Definitions:

Unamortized Premium

The portion of a bond premium that has not yet been amortized or gradually written off over time.

Current Maturities

The portion of long-term debt that is due to be paid within the next year.

Conversion Privileges

Options embedded in financial instruments that allow the holder to change the instrument into another, typically from a bond to stock.

Interest Rates

The percentage of a sum of money charged for its use, determined by the lender and agreed upon by the borrower.