The Members of Ike's Fraternity Think Spending the Entire Activity

question 81

Multiple Choice

The members of Ike's fraternity think spending the entire activity fund for the cultural fest is reasonable. Ike does not think this is a good idea but he decides to keep quiet rather than offend his fraternity brothers and risk being ridiculed. This scenario illustrates a symptom of:

• A) groupthink.
• B) deindividuation.
• C) the diffusion of responsibility.
• D) the self-serving bias.

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Definitions:

Management Accounting

A field of accounting focused on providing financial data and advice to company managers for decision-making purposes.

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A professional responsible for managing the financial health of an organization, including planning, analysis, and decision making.

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A senior executive who oversees the accounting activities, financial reporting, and the development of internal control policies.

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Experienced accounting professionals responsible for managing financial statements and ledgers, ensuring compliance with regulations, and performing audits.