"Oh by the Way, the Loan Contract Will Require That

question 92

Multiple Choice

"Oh by the way, the loan contract will require that your company maintain a checking account at this bank with a minimum balance of $7,000 or be subject to a 2 percent upward adjustment in the interest rate while the balance is below the minimum," said the banker just as the entrepreneur thought the start-up loan for her new business venture was settled. The banker is practicing:

• A)intimidation.
• B)browbeating.
• C)face saving.
• D)good guy―bad guy.
• E)lowballing.

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Definitions:

Group Polarization

The phenomenon where discussions within a group lead to the adoption of more extreme positions or attitudes than the initial inclinations of its members.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Social Facilitation

The tendency for people to perform tasks better when they are in the presence of others.

Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort and distress when holding two or more contradictory beliefs, ideas, or values, often leading to changes in beliefs or attitudes.