Hovland, Harvey, and Sherif Conducted an Experiment on Latitude of Acceptance

question 23

Multiple Choice

Hovland, Harvey, and Sherif conducted an experiment on latitude of acceptance of ideas about the state being "wet" or "dry" on the sale of alcohol beverages. They found that:

• A) the greatest change happened when a moderate discrepancy took place between the actual message and the individual's original opinion
• B) the greatest change happened when an extreme discrepancy took place between the actual message and the individual's original opinion
• C) it was very difficult to change the elders of the community because they wanted the state "dry"
• D) the greatest change happened for only people who moved from their "dry" position to a "wet" position because they could see the economic benefits

---

Definitions:

Inventory

The total amount of goods and materials held by a company intended for sale in the ordinary course of business.

Incremental Cash Flows

The additional cash inflows or outflows expected from a new project or investment, crucial for determining its net present value.

Capital Budgeting

The process of planning and managing a company's long-term investments in projects and assets, to maximize returns and shareholder value.

Incremental Cash Flows

The additional cash flow a company receives from taking on a new project, excluding any cash flows not directly attributable to the project.