Professor Smith Told One Class That Drinking Alcohol Has Been

question 3

Multiple Choice

Professor Smith told one class that drinking alcohol has been found to increase sexual desire. He informed another class that drinking alcohol has been found to reduce sexual appetite. The fact that neither class was surprised by the information they received best illustrates the power of

• A) intuition.
• B) hindsight bias.
• C) critical thinking.
• D) preconceptions.

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Definitions:

Common Share

A unit of equity ownership in a corporation, granting holders voting rights and a share in the profits through dividends.

Noncumulative

A term often used in the context of preferred stock dividends that indicates dividends not paid in one period do not need to be paid in future periods.

Nonparticipating

Refers to an insurance policy, financial instrument, or other contracts that do not entitle the holder to share in the profits or surplus of the issuer.

Cash Dividends

Payments made by a corporation to its shareholders out of its profits or reserves in the form of cash.