What Is Meant by the Term 'Financial Distress

question 46

Multiple Choice

What is meant by the term 'financial distress'?

• A) Where there are low levels of income
• B) Where obligations to creditors are not met or are met with difficulty
• C) Where obligations to shareholders are not met or are met with difficulty
• D) Where levels of taxation are high

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Definitions:

Self-Serving Bias

A cognitive bias where individuals attribute positive outcomes to their own actions and negative outcomes to external factors, protecting self-esteem.

Scapegoat Theory

A social psychology concept that explains the tendency to blame someone else for one's own problems, often as a way of deflecting attention from one's own failures.

Outgroups

Any group with which an individual does not identify, often viewed oppositely to the in-group and sometimes subject to biases and stereotypes.

Salience

The quality of being particularly noticeable or important; the state at which something stands out from its background or context.