In Addition to Biases Existing on the Part of People

question 14

Multiple Choice

In addition to biases existing on the part of people who do the ratings, the people who receive evaluations i.e., the ratees) can be biased as well. One example of ratee bias is egocentric bias, which is best described as the tendency to:

• A) evaluate oneself more favorably than others do.
• B) believe that one is not in touch with their inner needs.
• C) believe that oneself is less fortunate and more incompetent than others.
• D) believe that others are envious of one's good looks and competencies.

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Definitions:

Income Statement Account

An income statement account is a financial account that reflects income, expenses, gains, and losses over a period, used to calculate net income.

Stock Dividend

A distribution of additional shares of a company to its shareholders instead of paying cash dividends, often used to conserve cash while still rewarding investors.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which often bears no relation to its market value.

Common Stock Dividends Distributable

A liability account that represents dividends declared by a company but not yet distributed to shareholders.