Raters Who Commit Severity Errors Generally

question 47

Multiple Choice

Raters who commit severity errors generally:

• A) rate employees on the basis of liking.
• B) restrict ratings to the high portion of the appraisal scale.
• C) restrict ratings to the low portion of the appraisal scale.
• D) rate employee performance similarly in all appraisal areas.

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Definitions:

Dividend

A share of profits paid by a company to its shareholders, typically on a regular basis.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company is using its equity to generate profits.

Dividend Growth Rate

The annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.

Earnings

The net profits of a company after all expenses have been deducted from revenues.