Suppose That You Are Reading a Story to a Group

question 15

Multiple Choice

Suppose that you are reading a story to a group of 6-year-old children; the story concerns a young child who is dancing around the room. You say to the children, "Try to think about how it would feel if you were dancing around this classroom." Based on the research of Foley and Ratner (1998) , you would probably find that

• A) some of the children would later report that they had in fact danced around the classroom.
• B) because children do not develop visual imagery until they are about 7 or 8, they would typically report, "You told us to think about dancing-but I didn't really dance."
• C) many children would report that they had actually heard dance music.
• D) the children would have no recall of the instructions, because they have so much difficulty understanding instructions.

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Definitions:

Watered Stock

Shares issued by a company at a value much greater than its asset worth, inflating its apparent value without actual backing.

Fair Market Value

An estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.

Business Judgment Rule

A legal principle protecting corporate directors and officers from liability for decisions made in good faith and in the best interest of the company.

Derivative Action

A lawsuit brought by a corporation’s shareholder on behalf of the corporation against a third party, often an insider of the corporation.