When an Observer Blames Another Person's Performance Failures or Problems

question 155

Multiple Choice

When an observer blames another person's performance failures or problems more on internal factors relating to the individual than on external factors relating to the environment, the observer is ___.

• A) making a fundamental attribution error
• B) promoting a self-serving bias
• C) doing a legitimate performance appraisal
• D) applying the Internal Factor Theory
• E) applying the External Factor Theory

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Accounts Payable

Liabilities of a business that represent amounts owed to creditors for goods and services received but not yet paid for.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, which should not affect future business decisions.

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are expected to yield returns over a period of time longer than one year.