Social Identity Theory Says That

question 76

Multiple Choice

Social identity theory says that:

• A)we define ourselves in terms of our membership in certain groups and our differences with people who belong to other groups.
• B)we tend to believe our own actions are caused by motivation or ability rather than the situation.
• C)our expectations about another person cause that person to act in a way that is consistent with those expectations.
• D)we quickly form an opinion of people based on the first information we receive about them.
• E)our emotions screen out large blocks of information that threaten our beliefs and values.

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Definitions:

Constant Growth DDM

A dividend discount model that assumes dividends will continue to increase at a constant growth rate indefinitely, used to evaluate the price of a stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends and without voting rights.

Plowing Back

The reinvestment of earnings by a company back into its own operation or projects, also known as retained earnings.

ROE

Return on Equity, a financial ratio that measures the profitability of a business in relation to shareholder’s equity, indicating how well a company uses investments to generate earnings growth.