Alice Needs a New Cell Phone, but Is Anxious About

question 35

Multiple Choice

Alice needs a new cell phone, but is anxious about which phone she should buy. Many of her friends own popular phone models but complain about lost calls, short battery life, and poor predictive text functionality. While she has identified several attractive phone models, she doesn't feel like she can really try the phones out in such an artificial setting and is nervous that she might pick a phone that doesn't work as well as she had hoped. Alice perceives ________ associated with the purchase of a new phone.

• A) financial risk
• B) social risk
• C) psychological risk
• D) functional risk
• E) time risk

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Definitions:

Incentive Compensation

A form of payment designed to motivate and reward employees for exceeding specific performance goals.

Compensation

Payment or benefits provided to employees in exchange for their labor or services, including salaries, wages, and benefits packages.

Principal-agent Relationship

A dynamic between a principal, who delegates tasks, and an agent, who performs tasks on the principal's behalf, often leading to issues related to alignment of interests.

Decision Makers

Individuals or groups responsible for making choices that influence outcomes or the direction of a project, strategy, or organization.