Some May Argue That the Findings of the Solomon Asch

question 10

Essay

Some may argue that the findings of the Solomon Asch experiment are not terribly valuable because conformity is being assessed on a relatively innocuous task (i.e., choosing line sizes). What kind of situation might you use to test conformity that would be immune to this criticism? Can you think of a way to test conformity in the real world in a way that would be both useful and ethical?

Understand the differences between guarantees, indemnities, and other forms of security in financial transactions.

Identify and explain the elements that constitute real and personal property, including the implications for creditors and debtors.

Comprehend how continuing guarantees work and the effects of modifications to loan agreements.

Recognize the implications of using personal property as security under the Personal Property Security Act.

---

Definitions:

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Return on Assets

A financial ratio that measures how efficiently a company uses its assets to generate net income, typically expressed as net income divided by total assets.

Return on Debt

An assessment of the profitability relative to the amount of debt used, often calculated as the interest rate or yield on the debt instrument.

Interest Tax Shields

The reduction in income taxes that results from taking allowable deductions for interest expenses.