When Groupthink Occurs in Highly Cohesive Groups, Poor Decisions May

question 87

True/False

When groupthink occurs in highly cohesive groups, poor decisions may result from the members' unwillingness to criticize one another's ideas and suggestions, overemphasis on agreement, desire to hold the group together, underemphasis on critical discussion, and desire to avoid unpleasantries in the group.

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Definitions:

Weighted-average

A calculation method that assigns different weights to data points, used to determine the average value of various items in a dataset that are not equally significant.

Earnings Per Share

Earnings Per Share (EPS) is a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, measuring its profitability.

Preferred Dividends

Dividends that are paid out to preferred shareholders at a fixed rate before any dividends are paid to common shareholders.

Paid-in Capital

The total amount of money that shareholders have directly invested in a company by purchasing shares during initial offerings or via the secondary market.