Why Is Competition Valuable? How Does Competition Contribute to Strategic

question 31

Essay

Why is competition valuable? How does competition contribute to strategic CSR?

Recognize how prospect theory explains human behavior towards risks and rewards.

Identify the influence of anchoring on decision-making.

Grasp the key principles of behavioral economics related to gains, losses, and status quo.

Understand how credit card companies benefit from consumer behavior patterns.

---

Definitions:

Cash Received

The total amount of cash collected by a company during a specific period, including revenues, loans, and investments.

Salvage Value

The estimated residual value of an asset at the end of its useful life, which can be recovered through disposal.

Depreciation Expense

The distribution of a physical asset's cost throughout its lifespan.

Double Declining-Balance Method

An accelerated depreciation method that uses up to twice the straight-line rate multiplied with the book value of asset to calculate depreciation expense. Residual value is not subtracted from the cost of an asset in this calculation.