Research Has Shown That When Supervisors Rate Their Subordinates, the More

question 37

Multiple Choice

Research has shown that when supervisors rate their subordinates, the more similar the subordinate is to them, the higher the rating the superior tends to give. This is an example of the perceptual bias of:

• A) the similar-to-me effect.
• B) selective perception.
• C) the halo effect.
• D) first-impression error.

---

Definitions:

Accounting Information

It refers to financial data about a business or individual's economic activities, used to make economic decisions.

Liquidity

The measure of how easily assets can be converted into cash without significant loss in value.

Balance Sheet

An accounting report that outlines a firm's assets, obligations, and owners' equity on a specific date.

Leverage Ratio

A financial metric indicating the level of debt relative to equity in a company's capital structure, used to assess the risk of investing in the company.