According to the Representative Heuristic, If Roger Has Many of the Characteristics

question 64

Multiple Choice

According to the representative heuristic, if Roger has many of the characteristics of a millionaire, then people will:

• A)be less likely to think that he is a millionaire.
• B)be more likely to think that he is a millionaire.
• C)want to have those same characteristics.
• D)think that many people are millionaires.

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Definitions:

Dividends

Dividends are a portion of a company's earnings distributed to its shareholders as a reward for their investment in the company.

Expense

Money spent or costs incurred by a business in the course of generating revenues.

Increase Stockholders' Equity

Refers to the growth in the equity portion of a company's balance sheet, signifying a rise in the net assets owned by shareholders.

Transactions

Financial events or exchanges that affect a company's assets, liabilities, or equity, and must be recorded in the accounting records.