Attribution Theory

question 21

Multiple Choice

Attribution theory

• A)is an explanation of how behaviors influence attitudes.
• B)views people as motivated to discover the underlying causes of their behavior as part of their effort to make sense of the behavior.
• C)suggests that we feel uneasy when we notice an inconsistency between what we believe and what we do.
• D)is a theory of social comparison which posits that when individuals lack objective means to evaluate their opinions and abilities, they compare themselves with others.

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Definitions:

Minimum Required Rate

The lowest acceptable rate of return on an investment, as determined by management or investors.

Residual Income

The amount of income that an individual or company retains after accounting for all operating expenses and cost of capital.

Operating Assets

Assets that are used by a company in its daily operations to generate revenue, excluding any investment or non-operational assets.

Net Operating Income

The profit derived from a company's regular business activities, excluding deductions of interest and taxes.