A Car Crash Woke John from His Afternoon Nap

question 63

Multiple Choice

A car crash woke John from his afternoon nap. When he looked out his apartment window, he saw several people milling around two smashed cars. He decided not to dial 911 because he assumed someone had already called. John's reaction is an example of __________

• A) the bystander effect.
• B) pluralistic compliance.
• C) obedience to authority.
• D) conformity to social norms.

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Definitions:

2/10, Net 30

A common credit term indicating that a buyer can take a 2% discount on the invoice price if payment is made within 10 days, otherwise, the full invoice amount is due in 30 days.

Accruals

Adjustments in accounting for income that has been generated but not yet documented, and for costs that have been accrued but not yet documented.

Working Capital Needs

The funds required to finance the day-to-day operations of a business, including managing its short-term assets and liabilities.

Explicit Interest

The stated interest rate on a loan or financial instrument, not including the effects of compounding or any hidden charges.