The Psychological Term Self-Efficacy Was Addressed in Chapter 3 as a Means

question 9

Multiple Choice

The psychological term self-efficacy was addressed in Chapter 3 as a means of explaining entrepreneurship. High self-efficacy implies:

• A) that a person believes in his or her ability to make subjective judgments and to act in situations of uncertainty
• B) that a person is most effective when working alone
• C) that a person is less effective when working alone
• D) belief in one's ability to effectively work alone
• E) that a person believes in his or her ability to influence and impact a specific situation
• F) that a person believes he/she can do what is required in a situation

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Definitions:

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing the amount to be paid at maturity or the value of a share.

Straight Bond Value

The present value of a bond's future interest payments and its redemption value at maturity, assuming it has no special features.

Black-Scholes Option Pricing Model

A mathematical model for pricing an options contract by estimating the variation over time of financial instruments.

Option to Buy

A contract that gives the holder the right, but not the obligation, to purchase a specified asset at a set price within a specific timeframe.