When a Group Believes That They Are Totally Correct in All

question 20

Multiple Choice

When a group believes that they are totally correct in all of their decisions, it is a sign that _____________ may be occurring.

• A) the self-serving bias
• B) a fundamental attribution error
• C) groupthink
• D) diffusion of responsibility

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Definitions:

Tax Liability

The total amount of tax owed to governmental authorities, based on income, property value, transactions, or other taxable events.

Earnings Before Interest And Taxes (EBIT)

A measure of a firm’s performance without regard to how it is financed.

Net Working Capital

A measure of a company's liquidity, calculated as the difference between its current assets and current liabilities.

Total Equity

The financial value representing the amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debts were paid off.