Starbucks Is Considering Opening a New Store on the Drexel

question 290

Multiple Choice

Starbucks is considering opening a new store on the Drexel University Campus in Philadelphia. To analyze this decision Starbucks must compare the costs of starting the new store, which will be incurred today, with the profit the store will create in the future. When making this decision, the higher is the interest rate, the ________ is the discounted present value of the profits and the ________ likely Starbucks will be to open the store.

• A) higher; more
• B) higher; less
• C) lower; more
• D) lower; less

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Definitions:

Self-Censorship

The act of censoring or classifying one's own discourse, often out of fear of social, economic, or legal repercussions.

Vulnerability

The quality or state of being exposed to the possibility of being attacked or harmed, either physically or emotionally.

Self-Serving Bias

The common tendency to attribute our successes to personal characteristics and our failures to factors beyond our control.

Fundamental Attribution Error

The tendency to attribute others' behavior to their character or disposition rather than to external factors.