According to Cognitive Dissonance Theory (Festinger,1957),people Are Motivated to

question 50

Multiple Choice

According to cognitive dissonance theory (Festinger,1957) ,people are motivated to

• A) be accurate in their social perceptions.
• B) reduce psychological arousal via relaxation techniques.
• C) affiliate with others, especially those who agree with them.
• D) reduce inconsistency only to the extent that it involves something important.

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Definitions:

Capital Intensity Ratio

A measure of how much capital is used in comparison to labor in the production process of a company.

Operating Capacity

The maximum output a company can produce using its current resources and assets under normal working conditions.

Total Assets

The sum of all current and long-term assets owned by a company, representing its total resources or what it owns.

Retention Ratio

The percentage of net earnings held back in the company instead of being distributed to stockholders in the form of dividends.