Lisa Believes That Drinking Alcohol Is Wrong

question 51

Multiple Choice

Lisa believes that drinking alcohol is wrong.However,her boyfriend,Mike,likes to drink beer after work.Instead of breaking up with Mike,she decides that drinking alcohol is not so bad after all.Lisa's attitude most likely changed because of

• A) the fundamental attribution error.
• B) the actor/observer bias.
• C) postdecisional dissonance.
• D) cognitive dissonance.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet, often used to assess a company's worth.

Post-audits

Evaluations conducted after a project or investment has been completed to assess its success and learn from its outcomes.

Capital Budgeting Decision

The process of evaluating and selecting long-term investments that are in line with the firm's goal of value maximization.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.