Which of the Following Comments Is Most Likely to Be

question 85

Multiple Choice

Which of the following comments is most likely to be made in a group characterized by groupthink?

• A)"We have been in agreement on matters in the past and I hope that will continue."
• B)"Joe,why don't you play devil's advocate and challenge the course of action most of us seem to prefer?"
• C)"I think we need some outsiders to come in and critique our decision before we proceed."
• D)"We have made some stupid mistakes in the past.Let's work carefully and not make the same errors again."

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Definitions:

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including institutional investors and individual investors.

Net Present Value

A financial metric that calculates the present value of all cash inflows and outflows of a project or investment using a discount rate.

Market Value

The cost existing in the marketplace for trading an asset or service.

Rights Offering

A financial mechanism allowing current shareholders the opportunity to purchase additional shares directly from the company at a predetermined price, often at a discount to the market price.