Having Friends or Parents State Early in the Process of Your

question 62

Multiple Choice

Having friends or parents state early in the process of your college selection that a particular college is inappropriate might cause you to exclude that college without much thought. This is an example of what concept in action?

• A)Bolstering
• B)Groupthink
• C)Utility theory
• D)Cognitive dissonance theory

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Definitions:

Ratio Analysis

A technique of analyzing the strength of a company by forming (financial) ratios out of sets of numbers from the financial statements. Ratios are compared with the competition, recent history, and the firm’s plan to assess the quality of its performance.

Stable Company

Refers to a firm with consistent performance, low volatility in its stock price, and predictable financial returns, making it a less risky investment.

Growing Rapidly

A phase characterized by a significant increase in a company's revenue, profits, or size within a short period.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its operating income.