Which of the Following Is True with Regard to Trust

question 41

Multiple Choice

Which of the following is true with regard to trust propensity?

• A)The importance of trust propensity is seen interactions with family and friends.
• B)Trust propensity is most likely to be seen in people who display cognition-based trust.
• C)Trust propensity is a product of both nature and nurture.
• D)Trust propensity refers to the use of track records and rational assessments in making decisions.
• E)Low trust propensity is ideal as it prevents us from trusting others who are not trustworthy.

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Definitions:

Return on Total Assets

Return on Total Assets is a financial ratio that measures the profitability of a company in relation to its total assets, indicating how effectively a company is using its assets to generate earnings.

Profitability

The ability of a company to generate earnings above its costs and expenses over time.

Margin of Safety

The difference between actual or projected sales and the break-even point; measures the risk of not covering fixed costs.

Liabilities to Stockholders' Equity

A ratio that measures the amount of liabilities a company has compared to its shareholders' equity.