Discovering a Major Problem at Work, Doug Called Joan and Discussed

question 189

Multiple Choice

Discovering a major problem at work, Doug called Joan and discussed the problem with her at length. A few minutes later, his coworker Latesha called him, and Doug told Latesha about the problem. Later, Doug told a friend that Joan had said that fixing the problem would cost $10,000. But later when he looked at his handwritten notes of the two phone conversations, Doug discovered that Latesha, not Joan, had actually made the remark. The contradiction between what really happened and Doug's memory can best be explained by:

• A) source confusion.
• B) imagination inflation.
• C) the context effect.
• D) anterograde amnesia.

---

Definitions:

Subsidiary Entity

A company that is controlled by another company, known as the parent company, through ownership of more than half of its voting stock or through control of its operations.

Parent Entity

A corporation that owns enough voting stock in another corporation to control management and operations by influencing or electing its board of directors.

Non-depreciable Asset

An asset that is not subject to depreciation due to its indefinite useful life or that it maintains its value over time, such as land.

Intragroup Sale

A transaction involving the exchange of goods or services between entities within the same corporate group.