You Have Analyzed the Financial Statements and Other Data Associated

question 42

Multiple Choice

You have analyzed the financial statements and other data associated with a firm, and you have compared this firm to other firms in the same industry. Based on your analysis, you are
Convinced that this firm will increase its profits by at least 20% next year. What behavioral bias
Is this?

• A)overconfidence
• B)relativism
• C)narcissism
• D)compartmentalization

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Definitions:

Frederick Taylor

Known as the father of scientific management, he introduced the idea of applying scientific methods to management tasks to improve economic efficiency and labor productivity.

Carefully Calibrate

To adjust or measure something with a high degree of precision and care, ensuring accuracy or optimal performance.

Work Simplification

The standardization and the narrow, explicit specification of task activities for workers.

Task Activities

Activities related to the accomplishment of job duties or responsibilities in a work environment.