The Anchoring Tendency Relates To

question 33

Multiple Choice

The anchoring tendency relates to:

• A) Starting from an initial numerical value and then adjusting insufficiently away from it in forming a final judgment
• B) Starting from management's estimate and then adjusting sufficiently away from it in forming a final judgment
• C) Developing a system to give voice to one's values
• D) Developing a decision making framework

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Definitions:

Liabilities

Financial obligations or debts that a company or individual owes to others, which must be settled over time.

Creditors

Entities or individuals to whom money is owed.

Assets

Resources or items of value that an individual or organization owns or controls with the expectation that it will provide future benefit.

Resources Owned

Assets or possessions that are held by an individual, an organization, or a country.