The Tendency for Groups to Make Decisions That Are More

question 177

Multiple Choice

The tendency for groups to make decisions that are more radical or risky than would be made by individuals alone is called:

• A) groupthink.
• B) conformity.
• C) polarization.
• D) obedience.

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Definitions:

Noncumulative

A term often referring to certain preferred stock dividends that do not accumulate if unpaid, meaning if a dividend is skipped, it is not owed in the future.

Nonparticipating

A term often related to insurance policies or preferred stocks that do not have the right to share in additional earnings or dividends beyond a specified amount.

Journal Entries

Journal entries are the method of recording all the financial transactions of a business in the accounting system, as part of the double-entry bookkeeping system.

Treasury Stock

Shares of a company's own stock held by the company itself, acquired through buybacks.