Which of the Following Terms Best Describes the Tendency to Underestimate

question 4

Multiple Choice

Which of the following terms best describes the tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others?

• A) fundamental attribution error
• B) bandwagon effect
• C) selective perception
• D) emotional dissonance
• E) framing effect

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Definitions:

Common Fixed Expense

Rephrased: Fixed costs that are not directly tied to the level of production or sales and are common across different departments or product lines.

Operating Results

The financial outcomes of a company's operations, often presented as net income or loss, which represent the profitability from regular business activities.

Income Statement

A financial statement that shows a company's revenues and expenses, leading to its net profit or loss over a specific period.

Net Operating Income

The total profit of a company after operating expenses have been subtracted from total revenue, but before deducting taxes and interest.