Halo Effects Occur When

question 12

Multiple Choice

Halo effects occur when:

• A) several sources of information are used to generate a rational employee performance evaluation.
• B) one employee's performance is evaluated by comparing it to that of other employees.
• C) all areas of performance are rated high because the rater feels one aspect of the performance is high.
• D) intuitive judgment and gut feeling are used to evaluate the performance of the employee.
• E) when the performance evaluation of the employee is primarily based on the last two months preceding the evaluation.

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Definitions:

Voting Trust

An arrangement where shareholders' voting rights are transferred to a trustee, usually for the purpose of ensuring unified action or to resolve conflicts.

Share Titles

The formal documents that serve as evidence of ownership of stocks or shares in a corporation.

Trustee

A person or firm that holds and administers property or assets for the benefit of a third party.

Business Judgment Rule

A legal principle that protects the decisions made by the board of directors of a corporation as long as those decisions are made in good faith, with due care, and in the best interests of the corporation.