The Tendency to Underestimate the Influence of External Factors and Overestimate

question 55

Multiple Choice

The tendency to underestimate the influence of external factors and overestimate the influence of internal factors is known as:

• A)self-serving bias.
• B)attribution theory.
• C)fundamental attribution error.
• D)selective behaviour theory.

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Definitions:

Liquidity

The ability of an asset to be converted into cash quickly without significantly affecting its price.

Cash Flows

Cash Flows represent the movement of cash and cash equivalents into and out of a business, crucial for assessing its liquidity, flexibility, and overall financial performance.

Productive Capacity

The maximum output a system, entity, or product can produce using its current resources and constraints.

Net Accounts Receivable

Represents the total money owed to a company by its customers minus any allowances for doubtful accounts.