________ Refers to the Tendency of People to Draw a General

question 42

Multiple Choice

________ refers to the tendency of people to draw a general impression about an individual on the basis of a single characteristic.

• A) Confirmation bias
• B) Self-serving bias
• C) Randomness error
• D) Halo effect
• E) Hindsight bias

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Definitions:

Depreciation Tax Shield

The reduction in income tax expense realized by depreciating fixed assets for tax purposes.

CCA Class

Classified as Capital Cost Allowance, it refers to the categorization in tax systems for claiming depreciation expense for tax purposes.

Borrowed Funds

Money that has been obtained through loans or credit from financial institutions or individuals, which typically needs to be repaid with interest.

Incremental Annual Cash Flow

The additional cash flow an organization receives from taking on a new project or investment, calculated on an annual basis.