A Person's Final Judgment Is Almost Always Biased in the Direction

question 27

Multiple Choice

A person's final judgment is almost always biased in the direction of his or her initial point of view. The authors call this phenomenon:

• A) prejudicial cognitive syndrome.
• B) overestimation bias.
• C) underestimation bias.
• D) proximity bias.
• E) the anchoring effect.

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Definitions:

Voting Rights

The entitlements of shareholders or members of an organization to vote on matters affecting the governance of that entity.

Common Stock

The most usual type of corporate stock. It carries with it all the risks of the business and does not guarantee its holder the right to profits.

Capital upon Dissolution

The remaining assets available for distribution to the shareholders or partners after a firm's liabilities have been settled during dissolution.