An Income Ratio Based on ______________ Balances May Be Appropriate

question 45

Short Answer

An income ratio based on ______________ balances may be appropriate when the amount of funds invested in the partnership is critical to the partnership.

---

Definitions:

Conformity

A change in behavior due to explicit or implicit social pressure.

Fundamental Attribution Error

A cognitive bias that causes people to overestimate the influence of personality or dispositional factors on an individual's behavior while underestimating the influence of situational factors.

Dispositional Causes

Factors related to an individual's personality or internal characteristics that are thought to cause their behavior.

Situational Causes

Factors or circumstances outside the individual that are attributed to affecting behavior.