Phyllis Stintson Needs to Decide Whether to Start a Campaign

question 4

Multiple Choice

Phyllis Stintson needs to decide whether to start a campaign against deforestation in Indonesia. Though her research team has provided substantial information on the high feasibility of the project, Stintson does not go ahead with the project. Stintson's decision is most likely influenced by which of the following if she made the decision by drawing unconscious references from several different experiences in the past?

• A) framing effect
• B) intuition
• C) fundamental attribution error
• D) optimization
• E) anchoring bias

---

Definitions:

Convertible Bonds

Convertible bonds are fixed-income debt securities that can be converted into a predetermined number of the issuer's equity shares at certain times during their life, usually at the discretion of the bondholder.

Diluted Earnings Per Share

A financial metric that calculates the quality of a company's earnings per share if all convertible securities were exercised.

Stock Dividend

A stock dividend is a distribution of additional shares to shareholders, proportionate to their existing holdings, instead of cash.

Liabilities

Financial obligations or debts that a company owes to others, which must be paid back.