The Receipt of Cash Is One of the Operating Activities

question 94

Multiple Choice

The receipt of cash is one of the operating activities of:

• A)companies that sell goods but not companies that sell services.
• B)companies that sell to consumers but do not sell to other companies.
• C)merchandising,manufacturing,and service companies.
• D)companies that sell goods they bought from others but not of companies that make the goods they sell.

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Definitions:

Temporal Discounting

In decision making, the greater weight given to the present over the future.

Certainty Effect

A cognitive bias where people give greater weight to outcomes that are certain, compared to outcomes that are only probable.

Reactance

An inspired response to propositions, individuals, guidelines, or policies that challenge or remove certain freedoms of behavior.

Risk Aversion

In decision making, the greater weight given to possible losses than possible gains.