How Might Self-Serving Bias Be Observed in a Corporate Annual

question 28

Multiple Choice

How might self-serving bias be observed in a corporate annual report?

• A) The report would say more about the company's problems and less about its successes
• B) The report would emphasise the role of competition,inflationary pressures and other external causes of problems in the organisation's performance
• C) The report would exclude any bad news about the organisation's performance
• D) The report would acknowledge that competition,the economy and other external factors should be credited for some of the company's recent success
• ACCSB: Reflective thinking

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Definitions:

Big State University

A hypothetical or generic large public university often used in academic examples.

Tuition

The fee charged for instruction or education, typically by an educational institution such as a school or university.

Disposable Personal Income

Funds available to families for saving or spending after subtracting income taxes.

Retained Earnings

The portion of net income that is kept by a company rather than distributed to its shareholders as dividends, used for investment or paying off debt.