A Company That Sells Primarily on a Cash Basis Could

question 49

True/False

A company that sells primarily on a cash basis could support a lower quick ratio because their cash inflow is faster than a company selling on credit.

Differentiate between internal and external attributions and their role in behavior assessment.

Recognize the influence of distinctiveness, consistency, and consensus on attributions.

Comprehend the impact of recency effect, primacy effect, and halo effect on perception.

Understand the implications of self-serving bias and fundamental attribution error in personal and professional contexts.

---

Definitions:

Long Term Investments

Assets or securities that an investor holds with the intention to retain for a period of several years or longer.

Life Insurance Companies

Financial institutions that provide coverage that pays out a sum of money either on the death of the insured person or after a set period.

Investment Horizon

The length of time an investor plans to hold a particular investment.

Socially Responsible Fund

An investment fund that seeks to generate financial returns while also considering social and environmental criteria.