Which of the Following Is NOT an Example of an External

question 25

Multiple Choice

Which of the following is NOT an example of an external threat to a company's future profitability?

• A) lack of a distinctive competence
• B) potential of a hostile takeover
• C) adverse changes in foreign exchange rates
• D) unfavorable demographic shifts
• E) introduction of restrictive trade policies in countries where the company does business

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Definitions:

Availability Heuristic

A cognitive bias that causes people to overestimate the likelihood of events based on their ability to recall examples more easily.

Confirmation Bias

The habit of looking for, comprehending, selecting, and reminiscing about information that validates an individual's prior convictions or theories.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, also known as the "knew-it-all-along" effect.

Timing Bias

A form of cognitive bias where an individual's decisions or perceptions are influenced by the timing of information or events.