Kara Ltd Has the Following Sales Forecasts for the Selected Three-Month

question 70

Multiple Choice

Kara Ltd. has the following sales forecasts for the selected three-month period in 2011: Seventy per cent of sales are collected in the month of the sale, and the remainder are collected in the following month. Minimum cash balance is £10,000. Cash can be borrowed in £1,000 increments from the local bank (assume no interest charges) . How much cash would be collected in September from sales?

• A) £15,400
• B) £17,000
• C) £16,000
• D) £20,000

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Definitions:

Decision Making

The process of selecting among alternatives to achieve a goal or solve a problem.

Fairness Concerns

Issues or discussions surrounding the equitable treatment, distribution of resources or opportunities, and justice in societal, economic, or individual contexts.

Subjective

Subjective pertains to personal opinions, feelings, or tastes, as opposed to objective facts or universal truths.

Overconfidence Effect

A cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy.