Research on the Planning Fallacy Indicates That We Tend to ____

question 58

Multiple Choice

Research on the planning fallacy indicates that we tend to ____ when making predictions about ourselves and we tend to ____ when making predictions about other people.

• A)be overly optimistic; be overly optimistic also
• B)be overly optimistic; be realistic
• C)be overly optimistic; be overly pessimistic
• D)be realistic; be overly pessimistic

Identify and differentiate between Level 1, 2, and 3 inputs.

Understand the principles guiding the determination of the fair value.

Know the definition of the principal market and its significance in fair value measurement.

Understand the role of non-performance risk in fair value measurement of liabilities.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributed from the company's profits.

Preemptive Right

A shareholder's right to maintain their proportional ownership in a company by purchasing additional shares before they are offered to the public.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership stake in a corporation.

Common Stock

Equity securities that represent ownership in a company, providing voting rights and a share in the company’s profits through dividends.