All of the Following Contributed to Recent Financial Crises Except

question 37

Multiple Choice

All of the following contributed to recent financial crises except:

• A) Focusing on earnings instead of cash flow.
• B) Focusing on the short run.
• C) Relying on the efficiency of financial markets.
• D) Excessive risk taking due to underestimation of risk.

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Definitions:

Reactance Theory

Suggests that individuals may react against threats to their freedom of choice by doing the opposite of what they are being pushed towards, to reassert their autonomy.

Plan A

The primary strategy or course of action intended to achieve a specific goal before any alternatives are considered.

Likely

Having a high probability of occurring or being true.

Task Conflict

A form of conflict that arises over disagreements related to the work being done, goals to achieve, or methods to be used, which can sometimes lead to improved outcomes through increased group discussion and critical analysis.