Melissa Is Doing a Project for Her Lab Class in a Group

question 284

Multiple Choice

Melissa is doing a project for her lab class in a group with three other people. Melissa knows that two of the other girls are straight A students and that they will do an excellent job on the project. Melissa also knows that the teacher will not know who has done what work on the project so she does not put much work into it. Melissa is falling sway to:

• A) social facilitation
• B) norm of reciprocity
• C) social loafing
• D) group think

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Definitions:

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Calculating WACC

Determining the Weighted Average Cost of Capital, a measure of a firm's cost of capital in which each category of capital is proportionately weighted.

Weights

In finance, weights often refer to the proportion of each component of a portfolio or fund, typically expressed as a percentage of the total.

Common Equity

The amount of ownership interest in a corporation, represented by common stock held by investors.