Functional Fixedness Refers to

question 122

Multiple Choice

Functional fixedness refers to

• A) continued use of problem solving strategies that have worked in the past.
• B) arriving at a particularly insightful solution to a problem.
• C) focusing on information that is irrelevant to the solution of the problem.
• D) not seeing a new function for a familiar object.

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Definitions:

Preferred Stock

An equity security that typically provides dividends before common stock is considered and may have priority over common stock in asset liquidation.

Common Stock

Common stock represents shares of ownership in a corporation, giving holders voting rights and a residual claim on corporate earnings in the form of dividends.

After-Tax Interest Expense

The cost of borrowing after adjusting for the effects of taxes, calculated by subtracting the tax savings from the total interest expense.

Basic Earnings Per Share

A measure of a company's profitability that divides net income by the number of outstanding common shares.