Which of the Following Cognitive Biases Can Lead Negotiators to Discount

question 42

Multiple Choice

Which of the following cognitive biases can lead negotiators to discount the worth or validity of the judgment of others?

• A) Mythical fixed-pie beliefs
• B) Irrational escalation of commitment
• C) Overconfidence
• D) Anchoring and adjustment

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Definitions:

Internal Users

Individuals within an organization who use financial information to make decisions, including management, employees, and internal stakeholder groups.

External Users

Individuals or entities outside a company who utilize its financial information, such as investors and creditors.

Separate Legal Entity

A principle acknowledging that a corporation has a separate legal existence from its shareholders, protecting them from the company's debts.

Partnership

A business owned by two or more persons associated as partners.