Claude Has Been Watching His New Neighbor for a Week

question 217

Multiple Choice

Claude has been watching his new neighbor for a week.She drives a sporty car, carries a cell phone, and wears nothing but blue business suits.Claude decides his new neighbor must be a lawyer.In this case, Claude seems to have formed an opinion about his new neighbor's occupation based on:

• A)the availability heuristic
• B)the representativeness heuristic
• C)anchoring and adjustment
• D)framing

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Definitions:

Voting Common Stock

Common shares that entitle shareholders to vote on company policies and board member selections.

Preferred Stock

A type of stock that grants holders priority over common stockholders in terms of dividend payments and assets in the event of liquidation, often with fixed dividend rates.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, and operating results of a parent company and its subsidiaries as one entity.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the owners' claim on the company.