Hendrika Owns a Small Aerospace Company and Wants to Make

question 21

Multiple Choice

Hendrika owns a small aerospace company and wants to make sure that she recognizes the signs of groupthink if it crops up in her group meetings.She should be especially concerned that groupthink may be occurring if the group exhibits which of the following characteristics?

• A) coalition formation
• B) social loafing
• C) divergent thinking
• D) closed-mindedness

---

Definitions:

Incremental Value

The additional or added value created by undertaking a particular action or project, compared to not proceeding.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the present value of expected cash flows minus the initial investment.

Outstanding Shares

Shares of a company that are owned by investors, including restricted shares held by the company’s insiders.

Value Per Share

A measure reflecting the equity value of a company divided by its total number of outstanding shares, indicating what each share is worth.