If Employees Are Told That Budgets Must Be Cut by 10

question 109

Multiple Choice

If employees are told that budgets must be cut by 10 percent, they may automatically assume that 10 percent of employees will lose their jobs, too, even if that is not the case. This tendency to make assumptions is referred to as _____.

• A) closure
• B) regularization
• C) convergent thinking
• D) congruence bias

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Definitions:

Chapter 13

Chapter 13 refers to a bankruptcy procedure in the United States that allows individuals with regular income to create a plan to repay all or part of their debts.

Repayment Plan

An agreement between a borrower and lender outlining the terms for paying back borrowed money, often used to manage debt more effectively.

Court Approval

The formal acceptance or sanction of a legal action, agreement, or condition by a judge or court authority.

Involuntary Bankruptcy

A legal process initiated by creditors seeking to have a debtor declared bankrupt by a court, typically when the debtor is unable to pay outstanding debts.