Profits May Be Defined As

question 4

Multiple Choice

Profits may be defined as:

• A)expenses plus net income.
• B)costs plus revenues. 
• C)revenues plus expenses.
• D)revenues minus expenditures.

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Definitions:

Self-Serving Bias

A cognitive bias that involves attributing positive events to one's own character but attributing negative events to external factors, thereby protecting self-esteem.

Fundamental Attribution Error

The tendency to underestimate situational factors and overestimate personal characteristics when explaining others' behaviors.

Defensive Attribution

A cognitive bias theory explaining why people tend to attribute more blame to actions of others than to self, especially in negative situations, as a defense mechanism.

Matching Hypothesis

A theory suggesting that individuals are more likely to form long-lasting relationships with those who are equally matched in social attributes, like physical attractiveness.