As Part of Expected Utility Theory, What Principle States That

question 36

Multiple Choice

As part of expected utility theory, what principle states that preferences should remain the same no matter how preferences are measured and no matter how decision alternatives are described?

• A)Probability principles
• B)Transitive principle
• C)Choice deferral principle
• D)Domination principle
• E)Invariance principle

---

Definitions:

Balance

This term refers to the total amount of money in a financial account, the difference between credits and debits in an account, or the equilibrium between opposing forces or actions.

Construction Loan

A short-term loan used to finance the building of a home or another real estate project.

First Mortgage Bonds

Bonds that are secured by a first priority claim on a specific set of assets, usually property or real estate, in the event of the issuer's bankruptcy or default.

Working Capital Management

The management of a company's short-term assets and liabilities to ensure operational efficiency and financial stability.