What Is a Belief Bias in Reasoning

question 56

Multiple Choice

What is a belief bias in reasoning?

• A)mistakes in reasoning based on beliefs about how reasoning works
• B)misplaced belief in logical forms
• C)drawing conclusions based on one's prior beliefs
• D)failure to see the reasons behind other people's beliefs

Understand the general principles of crafting persuasive business and sales messages.

Identify the role of emotional and rational appeals in sales messages.

Recognize the importance of choosing the appropriate medium and structure for sales messages.

Acknowledge the ethical considerations in framing sales messages.

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation of a firm's capital cost that weighs each category of capital (equity, debt) proportionately.

CGT

Capital Gains Tax, a tax on the profit realized on the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale.

Selling New Common Stock

The process whereby a company issues and sells additional shares of its common stock to investors to raise capital.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and it can also be viewed as the risk-free rate of return plus a risk premium.