The Term "Cognitive Miser" Refers to Our Tendency

question 14

Multiple Choice

The term "cognitive miser" refers to our tendency:

• A) to meticulously count up all the pros and cons of a particular decision
• B) to expect others to do our thinking for us
• C) to take shortcuts in processing complex information
• D) to put self-interest over the interests of others when processing information

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Definitions:

Board of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization.

Voting Trust

A type of shareholder voting arrangement by which shareholders transfer their voting rights to a voting trustee.

Model Business Corporation Act

A template law provided to guide states in the drafting of their own corporate statutes, aimed at promoting uniformity and clarity in corporate governance and activity.

Majority Shareholders

Individuals or entities that own more than half of the shares in a corporation, giving them significant control over the company's decisions.