The Overall Theme of Chapter 17 ("Applying Social Psychology to the Good

question 45

Multiple Choice

The overall theme of Chapter 17 ("Applying Social Psychology to the Good Life") is that

• A) optimism is always desirable
• B) pessimism is always desirable
• C) neither pessimism nor optimism is ever desirable
• D) a balanced view of optimism and pessimism is desirable

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Inventory Turnover

A measure of the liquidity of inventory; computed by dividing cost of goods sold by average inventory.

Liquidity

The ability of an asset to be quickly converted into cash or the ability of a company to meet its short-term financial obligations.

Federal Government

The national government of a federated state, which holds the authority to govern at a national level, possessing powers typically outlined in a constitution.