Sharon Works as a Customer Service Agent at Ace Technologies

question 73

Multiple Choice

Sharon works as a customer service agent at Ace Technologies, a firm that develops inventory management software. Sharon needs to inform her manager about a customer issue that has escalated. Sharon, to avoid presenting negative information to her manager, frames information in a more positive light than reality. In this example, _____ bias occurs.

• A) representativeness
• B) satisficing
• C) overconfidence
• D) underconfidence
• E) hindsight

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Definitions:

Installment Payments

Payments made regularly over a period of time to settle a debt or purchase, often including interest charges.

Convertible Bonds

Bonds that can be converted into a predetermined number of shares of the issuing company's equity at certain times during their life, usually at the discretion of the bondholder.

Bond Redemption

The process whereby a bond issuer returns the bond's principal value to the bondholder, effectively terminating the bond at or before its maturity.

Carrying Value

Carrying Value is the book value of an asset or liability on a company's balance sheet, calculated as the original cost minus depreciation, amortization, or impairment costs.