Which of the Following Statements Concerning Groupthink Is True

question 32

Multiple Choice

Which of the following statements concerning groupthink is true?

• A)Groupthink can have a positive or negative effect on a group depending on the context in which it occurs.
• B) Groupthink often shuts out realistic and logical analysis of a problem.
• C) Groupthink can lead to realistic analysis of a problem.
• D)Groupthink can bring the best out of group members.

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Definitions:

Long Position

The purchase of a security such as a stock or commodity with the expectation that the asset will increase in value.

Futures Contract

A formal contract for purchasing or selling an item at a pre-set price at a future date.

Maturity

The date on which the principal amount of a financial instrument is scheduled to be repaid.

Daily Settlements

The process by which futures contracts are revalued at the end of each trading day based on the closing market prices to reflect gains and losses.