The Strap of John's Backpack Tears Off as He Starts

question 159

Multiple Choice

The strap of John's backpack tears off as he starts to throw it over his shoulder. On the way to school, he stops at the first store that carries backpacks, walks in, and purchases one off the front rack. John has just made what type of a decision?

• A)satisfactory decision
• B)optimal decision
• C)satisficing decision
• D)risky decision

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Definitions:

Expenses

Amounts used to generate revenue; assets used up or services consumed in the process of generating revenues.

Net Discounted Cash Flow

The value of all future cash flows of a project or investment after being discounted to the present value, reflecting both time and risk.

Cash Flowing

The movement of money in and out of a business, representing its operational liquidity.

Expenses

Costs incurred during the operation of a business that are necessary for generating revenue, such as rent, salaries, utilities, and materials.