Owners of a Company

question 24

Multiple Choice

Owners of a company:

• A)hold promissory notes as evidence of their ownership claim.
• B)are entitled to repayment of their investment.
• C)have a claim that is secondary to creditor's claims.
• D)have a claim equal to the amount of liabilities a company owes.

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Definitions:

Actor-Observer Effect

The tendency to attribute one's own actions to external causes while attributing others' actions to internal factors.

Halo Effect

The cognitive bias that causes one's impression of a person to influence one's thoughts and feelings in unrelated areas.

Mere-Exposure Effect

A psychological phenomenon by which people tend to develop a preference for things or people they are exposed to frequently.

Self-Serving Bias

A cognitive bias that causes individuals to see themselves in a more favorable light, attributing successes to internal factors and failures to external factors.