How Is Normative Influence Different from Informational Influence

question 2

Multiple Choice

How is normative influence different from informational influence?

• A) There are no such differences between these influences.
• B) The number of people in the group.
• C) Normative results in compliance while informational results in change in belief.
• D) Normative has minority influence while informative has majority influence.

---

Definitions:

Discount Rate

A rate used to determine the present value of future cash flows, reflecting the time value of money and risk of the cash flows.

Profitability Index

A calculation that determines the relative profitability of an investment, indicating the value created per unit of investment.

Cash Inflows

Funds that enter a business, resulting from sales, financing, or investment returns, contributing to the company's cash balance.

Payback

the period of time required for an investment to generate funds to recover its initial outlay.