Sam Is a Manager of a Fast- Food Restaurant That

question 91

Multiple Choice

Sam is a manager of a fast- food restaurant that serves only hamburgers and french fries. He fails to realize changes in the environment, such as a trend toward health consciousness. He continues to limit his menu to greasy burgers and states that customers will return when the weather gets better. Which cognitive bias does Sam have?

• A)Projection
• B)Frequency
• C)Representativeness
• D)Cognitive dissonance

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Definitions:

Death Benefit

A sum of money paid by an insurance policy or retirement plan to the beneficiary upon the death of the insured person or plan holder.

Losses

The negative financial impact that occurs when expenses exceed revenues, or due to unforeseen events or damages.

Mutual Mistake

An error shared by all parties in a contract, leading to a misunderstanding regarding a fundamental fact or element of the agreement.

Fraud

Deliberate deception or misrepresentation intended to result in an unfair or unlawful gain.