The Fact That Individuals, When Observing Others, Tend to Underestimate

question 18

Multiple Choice

The fact that individuals, when observing others, tend to underestimate the influence of external factors and overestimate the influence of internal factors is called ________.

• A)self-serving bias
• B)fundamental attribution error
• C)external consistency bias
• D)blame theory
• E)internal favouritism

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired and held in its treasury.

Cumulative

Referring to the total amount accumulated over time, often used to describe interest, dividends, or other quantities that increase over periods.

Preferred Stock

Preferred stock is a type of stock that gives its holders priority over common stockholders in terms of dividend payouts and claims on assets in the event of a liquidation.

Treasury Stock

Refers to shares that were once part of the outstanding shares but were bought back by the company. Now, these shares are held in the company's treasury.