Claire Spent $100 for a Nonrefundable Ticket to a Play

question 114

Multiple Choice

Claire spent $100 for a nonrefundable ticket to a play.Then she found out her granddaughter's first dance recital was that day.Claire really wanted to go to the recital,but she felt obligated to go to the play.Claire was displaying:

• A)the representative heuristic.
• B)the sunk-cost fallacy.
• C)functional fixedness.
• D)family resemblance bias.

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Definitions:

Net 60

A payment term indicating that payment is due 60 days after the invoice date.

Lock Box System

A banking service provided to companies for speeding up collection of payments by having those payments sent directly to a bank's PO box, rather than to the company.

Clearing Time

The period between the initiation of a transaction and its settlement, during which the transaction is processed and validated.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.