A Committee Is Made Up of 12 Managers: Three Each

question 60

Multiple Choice

A committee is made up of 12 managers: three each from the sales, production, accounting, and human resources departments. They read a comprehensive study of the company they work for, and are asked which of its recommendations are most important. In discussion they find that the managers perceive that the most important recommendations are those concerning their own departments. This finding is most likely the result of what type of bias?

• A) selective perception
• B) halo effect
• C) Pygmalion effect
• D) self-serving bias
• E) projection

---

Definitions:

Fraudulently

Acting with intent to deceive or cheat, often to gain an unfair or unlawful advantage.

Mutual Mistake

A situation where both parties to a contract have an incorrect belief about an essential fact of the contract at the time of agreement.

Unconscionability

Describes a contract or term within a contract deemed so unfair or oppressive to one party that no reasonable or informed person would agree to it.

Risk of Loss

The responsibility for damage or financial burden that may arise from the destruction, damage, or loss of goods.