Whose Interests Should a Financial Manager Consider Paramount When Making

question 66

Multiple Choice

Whose interests should a financial manager consider paramount when making a decision?

• A) the stockholders who have risked their money to become owners of the company
• B) the employees and associated stakeholders who are employed by the company
• C) the public who consume the company's goods and services
• D) the senior management and associated colleagues at the executive level within the company

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Definitions:

Outgroup Favoritism

The phenomenon where a person prefers and supports the members of a group they are not part of over their own group.

Social Identity

An individual's sense of who they are based on their group memberships, such as social, cultural, and occupational groups.

Ingroup Bias

The inclination to prefer individuals from one's own group rather than those from outside groups.

Hindsight Bias

A cognitive bias that causes people to overestimate their ability to predict events that have already happened.