One Sense of the Word Rational Is That a Person

question 40

Multiple Choice

One sense of the word rational is that a person is following the rules and norms for good reasoning, such as reasoning logically. Another sense of the word discussed in the critical reading discussion concerns:

• A) whether thinking helps create or maintain bias.
• B) whether thinking helps maintain a person's beliefs.
• C) how well thinking helps a person reach his or her goals.
• D) how well thinking helps a person avoid thinking errors.

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Definitions:

Profit Margin

A financial metric used to assess a company's profitability by calculating the percentage of revenue that exceeds the costs of goods sold.

Retained Earnings

The portion of a company's profits not distributed as dividends but reinvested in the business.

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, expressed as a percentage.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated by comparing the net income and the revenue of a company.