The Industry in Which a Firm Operates Has Relatively Little

question 108

True/False

The industry in which a firm operates has relatively little effect on the relative amounts of transaction cash held.

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Definitions:

Fundamental Attribution Error

The tendency to overestimate the influence of personal traits and underestimate the effects of situations when explaining others' behaviors.

Milgram's Research

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Obedience

is the act of following orders or instructions from an authority figure, often studied in psychology as a behavior of compliance.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.