A Group of Students Watch a Videotape of Two Managers

question 67

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 toward all of the employees.The other manager is less friendly but still respectful toward the employees.What concept would explain the more positive ratings on other dimensions for the friendly manager as compared to the less friendly manager?

• A)The Rosenthal effect
• B)The horns effect
• C)The halo effect
• D)The leniency effect

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Definitions:

Required Rate

A rephrased definition: The minimum return rate required by investors to consider investing in a particular asset or project.

Coupon Interest Rate

Stated rate of interest on a bond, defined as the coupon payment divided by the par value.

Market Value

Market value is the current price at which an asset or company can be bought or sold in the marketplace, reflecting the value the market places on it.

Call Provision

Gives the issuing corporation the right to call the bonds for redemption. The call provision generally states that if the bonds are called, the company must pay the bondholders an amount greater than the par value, a call premium. Most bonds contain a call provision.