When Decision Makers Seek Out Information That Reaffirms Their Past

question 87

Multiple Choice

When decision makers seek out information that reaffirms their past choices and discount information that contradicts past judgments, they are exhibiting the ________ bias.

• A) hindsight
• B) availability
• C) representation
• D) confirmation

Acknowledge the factors contributing to small and family business successes.

Identify key reasons for new business failures and strategies to mitigate them.

Understand the implications of lack of experience, expertise, and commitment on business operations and success.

Recognize the importance of succession planning in family businesses and its challenges.

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Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing ownership interest.

Assets

Assets are resources owned by a company or individual that have economic value and can provide future benefits, like cash, inventory, and equipment.

Increase

An upward movement or growth in value, amount, or any measurable attribute.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim on the company's resources.