When Given a Choice, Businesses Prefer to Obtain Long-Term Financing

question 95

True/False

When given a choice, businesses prefer to obtain long-term financing through retained earnings or by borrowing from a lending institution such as a bank.

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for others' behaviors in situations, while underemphasizing the role of external factors.

Latitude of Acceptance

The range of ideas that an individual sees as reasonable or worthy of consideration.

Social Psychology

A branch of psychology that deals with social interactions, including their origins and their effects on the individual.

Person Perception

The process by which individuals form judgments and impressions of other people.