Suppose an Executive Creates a Model of Her Business, Including

question 12

Multiple Choice

Suppose an executive creates a model of her business, including such factors as product demand, trade restrictions, and labor costs.Then she imagines how these factors will play out in the coming year.She uses the predictions as a way of making decisions about whether to hire or fire workers.The executive is relying on the

• A)representativeness heuristic
• B)availability heuristic
• C)simulation heuristic
• D)means end heuristic

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Definitions:

Interim Statement

Financial reports prepared and presented for periods less than a fiscal year, such as quarterly or half-yearly.

Operating Segment Disclosures

Financial reporting requirements that necessitate entities to disclose income, expense, and other significant information about their operating segments.

U.S. GAAP

The Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting used in any jurisdiction, including the rules and standards for corporate financial reports.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.