BUS 475 Week 1 Knowledge Check
1. Reaching a valid decision is based on the evaluation of arguments. If we know that a valid argument has true premises, then a decision based on the argument______________.
• must be sound
• might be sound
• is strong
• might have a false conclusion
2. Identify the fallacy in the following piano store advertisement: “Pianos are our only business. You’ll get the best deal at the Piano Experts.”
• Ad hominem
• Straw man
• Hasty generalization
• Red herring
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3. Which of the following statements describes creativity correctly?
• Only highly intelligent people are capable of generating creative ideas.
• Creative people are born with the trait.
• Anyone can become more creative.
• Children are more creative than adults.
4. How would you assess the following statement? Consider both the nature of the claim and the source. “Lottery director Mark Michalko said Thursday that allegations that Californians are squandering money they once used for food to buy lottery tickets âare just not correct.’. . . California Grocers Association president Don Beaver raised the issue earlier in the week, saying five supermarket chains had complained that grocery sales dropped about 5 percent after lottery tickets went on sale October 3.” —Sacramento Bee
• Probably true
• Probably false
• Requiring further documentation
• Claim that cannot be properly evaluated
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5. The Sarbanes–Oxley Act was created in 2002 to improve and maintain investor confidence. The act includes which of the following:
• senior managers sign off on financial results
• privately held companies must report to the public
• officers are exempt if they were not aware of a misrepresentation
• company insiders may compose the entire Board of Directors