Define Groupthink

question 69

Essay

Define groupthink. Give an example and provide two suggestions for reducing or preventing groupthink in an organization.

Recognize the importance of critical thinking attributes such as open-mindedness and mindfulness.

Understand the impact of biases and heuristics on decision-making.

Grasp the concept of loss aversion and related cognitive biases.

Understand the role of legislation in addressing environmental issues.

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Definitions:

Canadian Common Stocks

Equity shares issued by Canadian corporations, representing ownership in the company and entitling holders to dividends and voting rights.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.

TSX

The Toronto Stock Exchange, which is the largest stock exchange in Canada where securities are bought and sold.

Standard Deviation

A metric that quantifies the extent of differences or variability among a group of figures.