When Professor McKay Nervously Began Teaching a University Class for the First

question 9

Multiple Choice

When Professor McKay nervously began teaching a university class for the first time, he overestimated the extent to which his students would notice that he was anxious. His reaction best illustrates

• A) self-serving bias.
• B) the spotlight effect.
• C) reaction formation.
• D) reciprocal determinism.

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Definitions:

Business Judgment Rule

A legal principle that shields corporate directors, under certain conditions, from liability for decisions that harm the company if the decisions were made in good faith and with due diligence.

Fiduciaries

Individuals or entities that hold a legal or ethical relationship of trust with one or more parties, often in financial matters.

Shareholder Approval

A process in which shareholders vote on key corporate actions or decisions, often required for mergers, acquisitions, and other significant matters.

Liability of Directors

Legal responsibility held by company directors for actions or decisions made in the course of carrying out their duties.