Jack and April Are a Couple Who Have Decided to Settle

question 33

Multiple Choice

Jack and April are a couple who have decided to settle their divorce through the final-offer arbitration method.Each of them believes he or she has more than a 50 percent chance of having his or her proposal chosen by the arbitrator.What type of bias is evident here?

• A) hostile media bias
• B) overconfidence bias
• C) false attribution bias
• D) exaggeration of conflict bias

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Definitions:

Liability for Losses

The obligation of an individual or entity to compensate for damages or financial losses incurred by another.

Limited Partner

An investor in a partnership whose liability is limited to the amount of the investment and who does not participate in day-to-day management.

Management Rights

The powers and authority given to managers or executives to make decisions and direct operations within an organization.

Limited Liability

A legal principle that limits an investor's loss in a business venture to the amount of capital they have invested, protecting personal assets from business debts.