Because of "Mental Accounting

question 33

Multiple Choice

Because of "mental accounting,"

• A)people are better able to process price changes than changes in product sizes.
• B)people tend to be less risk averse.
• C)people pay too little on their monthly credit card bills.
• D)people isolate purchases and sometimes make irrational decisions.

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Definitions:

Organizational Form

The structure or framework adopted by a business or entity that dictates its operational and governance approach, such as a corporation, partnership, or sole proprietorship.

Owners' Acts

Legal actions or decisions made by the owners of a property or business.

Franchisee

One receiving a license to use another’s (the franchisor’s) trademark, trade name, or copyright in the sale of goods and services.

Independent Businessperson

An individual who operates and manages their own business, making decisions independently, often bearing the risks and rewards of the enterprise.