Heuristics

question 294

Multiple Choice

Heuristics

• A)are rules of thumb that generate decisions that generally maximize net benefits.
• B)take a long time to develop and are therefore avoided by rational decision makers.
• C)are shortcuts that save time and energy in decision making.
• D)always waste mental resources by leading people to suboptimal outcomes.

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are easily convertible into a known amount of cash.

Cash Burn

The rate at which a company spends its cash reserves before generating positive cash flow from operations.

Monthly Cash Expenses

The total amount of cash spent by an individual or organization on various expenses within a month.

Internal Control

Procedures and processes implemented by a company to safeguard its assets, ensure accurate financial reporting, and promote operational efficiency.