Warren Buffett Feared Gaining Weight

question 2

Multiple Choice

Warren Buffett feared gaining weight. To keep himself from eating too much, he gave unsigned checks for $10,000 to his children, promising to sign them if he exceeded his desired weight by a certain date. This is an example of:

• A) an abductive decision.
• B) sunk costs.
• C) an inductive decision.
• D) a precommitment strategy.

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Definitions:

Budget Process

A planning process that involves the creation of a financial plan or budget to project future revenues and expenses, guiding an organization's financial decisions.