During the Process of Groupthink

question 91

Multiple Choice

During the process of groupthink

• A)group members quickly settle on a position and then they treat other possibilities as oppositional.
• B)group members encourage each other to see the issue from multiple points of view.
• C)group members treat reaching consensus as less important than encouraging everyone to speak up openly.
• D)The group seeks diverse members and ends up being unable to reach a consensus.

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Definitions:

Payback Period

The length of time it takes to recover the initial cost of an investment, calculated by dividing the investment cost by annual cash inflows.

Hurdle Rate

The lowest acceptable profit that a project or investment must generate to meet the requirements of a manager or investor.

Projected Cash Flows

Estimates of the amount of money expected to flow in and out of a business over a future period.

Time Value of Money

The principle that a dollar received today is worth more than a dollar received in the future, due to its potential earning capacity.