When Members of a Group Come Together with a Certain

question 47

Multiple Choice

When members of a group come together with a certain attitude, that attitude becomes more extreme after the group discusses it. This effect is called ________.

• A) social loafing
• B) decision polarization
• C) responsibility diffusion
• D) the principle of least interest

---

Definitions:

Technical Insolvency

A situation where an entity cannot meet its short-term financial liabilities, despite potentially having enough assets to cover its debts.

Legal Insolvency

A financial condition in which an entity is unable to meet its debt obligations as they come due, potentially leading to legal processes for debt resolution.

Obligations

Duties or responsibilities imposed by legal or ethical requirements, contracts, or agreements.

LBO

Leveraged buyout. A process in which an investor group buys up a company’s stock using a small amount of equity and borrowing the rest of the money required. The debt is often secured by the firm’s assets. The investor groups are often the firms’ managements, and the company goes from being publicly held to being privately held.