The Negativity Bias Is Also Called a ___

question 10

Multiple Choice

The negativity bias is also called a ___.

• A) sunk-cost trap
• B) downside bias
• C) overconfidence
• D) escalating commitment

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Definitions:

Diversification

Investment in more than one asset; returns do not move proportionally in the same direction at the same time, thus reducing risk.

Acquisition

The process of taking control of another company either by purchasing its shares or assets.

Complementary Resources

Resources that, when used in conjunction with another, enhance each other's value or productivity.

Tax Benefits

Advantages granted by the government to reduce one's tax liability.