Lottery Winners Who Take the Lump-Sum Payouts Instead of Payments

question 8

Multiple Choice

Lottery winners who take the lump-sum payouts instead of payments spread out over many years

• A) believe the rate of return they could find in other financial assets is less than that implied in the extended payout.
• B) sacrifice free money and are making an economically irrational decision.
• C) prefer immediate to delayed returns.
• D) are only making a rational economic decision if there is rapid inflation.

Understand the significance and structure of delivering bad-news messages in a business environment.

Identify appropriate tone and buffer strategies for bad-news communications.

Recognize unethical behaviors in business communication.

Comprehend the importance of preparing and structuring information before delivering bad news in person.

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Definitions:

Budgeting

The process of preparing detailed financial plans, forecasting revenues and expenditures, and setting financial goals.

Net Operating Income

This metric measures the profitability of a business from its primary operations, excluding expenses from financing and taxes.

Budgeting

The process of creating a plan to allocate resources, forecast revenues, and predict expenses over a future period.

Activity Variance

A measure of the difference between planned or budgeted activity levels and actual activity levels.