When Their Community Was Threatened with Flooding, Two Rival Groups

question 44

Multiple Choice

When their community was threatened with flooding, two rival groups ended up working together to try to save the town from the overflowing river. Based on Muzafer Sherif's findings, it is probable that the joint effort of the two groups to achieve a common goal may lead to:

• A)diffusion of responsibility and the bystander effect.
• B)increased conflict over which group should get the most credit for achieving the goal.
• C)reduced conflict and increased harmony between the two groups.
• D)increased antagonism and hostility once the danger has passed.

---

Definitions:

Translation Adjustment

An adjustment in the financial statements to account for gains or losses that arise from converting foreign currencies into the reporting currency.

Functional Currency

The primary currency of the primary economic environment in which an entity operates, used in generating and expending cash.

Exchange Rates

The worth of one currency when converted to another, establishing how much one currency can be exchanged for another.

Operating Expense

Recurring expenses incurred during normal business operations, such as rent, utilities, and salaries.