The So-Called "Self-Serving Bias" Refers to the Tendency for People

question 143

Multiple Choice

The so-called "self-serving bias" refers to the tendency for people to ____.

• A) take credit for their successes but deny blame for their failures
• B) remember cases in which they succeeded but forget cases in which they failed
• C) notice when they are better than others at things, but fail to notice when they are worse than others at things
• D) think that their personal skills, traits, and characteristics are more valuable and desirable than they really are

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Definitions:

Accounting

Accounting is the systematic practice, work, or process of communicating and recording financial information for a business or individual.

Finance

The management of large amounts of money, especially by governments or large companies, including the processes of investing, borrowing, lending, budgeting, saving, and forecasting.

Stocks and Bonds

Financial instruments that represent ownership in a company (stocks) and debt obligations (bonds), respectively, offering different levels of risk and potential returns.

Cash Flows

The aggregate sum of funds flowing in and out of a company, significantly influencing its ability to meet short-term obligations.