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The more optimistic the entrepreneurs, the less successful the performance of their new ventures. Which of the following systematic biases and errors creep into their judgments?
Market Price
is the current price at which an asset or service can be bought or sold in a competitive marketplace.
Common Stock
A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's profits through dividends and/or capital appreciation.
Net Profit Margin
A profitability ratio calculated by dividing net income by revenue, indicating the percentage of each dollar of revenue that results in net profit.
Total Assets
The sum of all current and long-term assets held by a company, indicating the total resources that a company has at its disposal.
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