Which of the Following Is Not an Indicator of Significant

question 42

Multiple Choice

Which of the following is not an indicator of significant influence?

• A)The investor has representation on the investee's board of directors.
• B)There are material transactions between the investor and the investee.
• C)The investor and the investee share office space and use the same accounting firm.
• D)The investor provides computing services to the investee.

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Definitions:

Festinger and Carlsmith

Psychologists known for their 1959 cognitive dissonance experiment which demonstrated how attitudes can change to align with behavior.

Cognitive Dissonance

A psychological concept indicating the state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.

Fundamental Attribution Error

The tendency to overestimate personality-based explanations for others' behavior while underestimating situational explanations.

Dispositional Cause

Cause of behavior attributed to internal factors such as personality or character.