You Are on a Committee Trying to Decide Whether to Combine

question 169

Multiple Choice

You are on a committee trying to decide whether to combine the psychology department with the sociology department.Although you have some concerns about combining the two departments,an outspoken member of the group takes the extreme opposite position.The phenomenon of polarization suggests that,after hearing this member's extreme position,you will:

• A) feel confused and undecided.
• B) feel positive that combining departments is a good idea.
• C) feel even more strongly that combining departments is a bad idea.
• D) go along with whatever the majority thinks.

---

Definitions:

Replacement Cost

The cost to replace an asset of a company at the present time, according to its current worth.

ROE

Stands for Return on Equity, a financial ratio that measures the profitability of a company in relation to shareholders' equity.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payouts, indicating the company's long-term earnings growth potential and financial health.

Earnings

Net income of a business entity over a set time frame, indicating its financial performance.