The social desirability bias is
A. the desire to be accepted as a foreigner in the local setting, so assuming local dress and mannerisms.
B. a bias in favor of those locals who pretend to like and accept the researcher.
C. the respondent's desire to please the researcher, leading to answers calculated to please.
D. the desire to become part of the social in-group in the new setting, with high status.
Answer: C
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Explain the perceived risks involved in Internet shopping.
What will be an ideal response?
The static budget, at the beginning of the month, for Singleton Company follows
Static budget: Sales volume: 1,000 units; Sales price: $70.00 per unit Variable costs: $32.00 per unit; Fixed costs: $35,500 per month Operating income: $2,500 Actual results, at the end of the month, follows: Actual results: Sales volume: 980 units; Sales price: $74.00 per unit Variable costs: $35.00 per unit; Fixed costs: $33,300 per month Operating income: $4,920 Calculate the flexible budget variance for fixed costs. A) $2,200 U B) $2,200 F C) $0 D) $3,180 F
Officials with the U.S. Department of Homeland Security search the laptops and smart phones of Diego, a Mexican citizen, and Ethan, a U.S. citizen, when they cross the border between the United States and Mexico. Diego and Ethan object to the search. The most likely basis for their objection is that the search constitutes
a. an invasion of privacy. b. a breach of contract. c. a breach of the principle of comity. d. a breach of the act of state doctrine.
Which of the following statements is CORRECT?
A. The capital structure that maximizes the stock price is generally the capital structure that also maximizes earnings per share. B. All else equal, an increase in the corporate tax rate would tend to encourage a company to increase its debt ratio. C. Since debt financing raises the firm's financial risk, increasing a company's debt ratio will always increase its WACC. D. Since debt is cheaper than equity, increasing a company's debt ratio will always reduce its WACC. E. When a company increases its debt ratio, the costs of equity and debt both increase. Therefore, the WACC must also increase.