The Tendency of People to Place Too Much Emphasis on Personal

question 16

Multiple Choice

The tendency of people to place too much emphasis on personal factors when accounting for other people's actions and too little emphasis on personal factors when accounting for our own actions is known as the ________.

• A) actor-observer bias
• B) self-serving bias
• C) recency effect
• D) primacy effect

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Definitions:

Loss Carry-Forward

A tax provision allowing companies to use their current year's net operating losses to reduce taxable income in future years.

Capital Losses

Financial losses incurred when the selling price of an asset is less than the purchase price.

Capital Gains

The profit from the sale of an asset or investment when the selling price exceeds its purchase price.

Quick Conversion

A process or strategy designed to rapidly convert assets or inventory into cash.