Rules of Thumb That Are Derived from Experiences and Used

question 241

Multiple Choice

Rules of thumb that are derived from experiences and used in decision-making and problem solving because they usually work are __________

• A) heuristics.
• B) additive strategies.
• C) exemplars.
• D) ideas.

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Definitions:

Equity

The ownership interest held by shareholders in a corporation, calculated as total assets minus total liabilities.

Liability

A financial obligation or debt that a company owes to others, which must be settled over time through the transfer of assets or services.

Asset

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Expense

Money spent or cost incurred in an entity's efforts to generate revenue, representing the cost of doing business.