In the Table Below the Information for Four Companies Is

question 135

Multiple Choice

In the table below the information for four companies is provided. $\begin{array}{|l|c|c|}\hline \text { Company } & \begin{array}{c}\text { Accounts Receivable } \\\text { turnover }\end{array} & \text { Average collection period } \\\hline \text { Martin } & 13.9 & 26.3 \\\hline \text { Lewis } & 13.3 & 27.4 \\\hline \text { D anforth } & 10.4 & 35.1 \\\hline \text { Gamer } & 14.5 & 25.2 \\\hline \text { Industry Average } & 13.0 & 28.1 \\\hline\end{array}$ Assuming all four companies are in the same industry, which company appears to have the greatest likelihood of paying its current obligations?

• A)Martin
• B)Lewis
• C)Danforth
• D)Garner

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Definitions:

Availability Heuristic

Estimating the frequency or likelihood of an event based on how easy it is to recall relevant information from memory or how easy it is for us to think of related examples.

Self-Fulfilling Prophecy

The tendency of one’s expectations to affect one’s behavior in such a way as to make the expectations more likely to occur.

In-Group

A social group to which an individual identifies as being a member, fostering a sense of belonging and identity among its members.

Out-Group

Out-Group refers to social groups with which an individual does not identify, often perceived as different or separate from one’s in-group, which can affect attitudes and behaviors towards members of these groups.