A Firm Should Be Transparent, Meaning

question 41

Multiple Choice

A firm should be transparent, meaning

• A)the windows at headquarters should be cleaned regularly
• B)if executives lie during a stockholder meeting, people should be able to see right through them
• C)someone should be able to look at the books and the balance sheet and tell exactly what's going on
• D)None of the answers is correct
• E)All of the answers are correct

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Definitions:

Illusion of Control

The erroneous belief that one can influence or control outcomes that are actually determined by chance.

Discounting Principle

A psychological concept suggesting that when there are multiple perceived causes for behaviour, the importance of any single cause is diminished.

False Consensus Effect

The cognitive bias where a person overestimates the extent to which their beliefs, values, or behaviors are normal and shared by others.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others and to understand that others have beliefs and perspectives different from one's own.