José Tried Caviar at a Restaurant and Found He Did

question 358

Multiple Choice

José tried caviar at a restaurant and found he did not like it. However, he ate all of it because he had paid such a high price for it. José's behavior can be explained as

• A) a framing bias.
• B) a sunk cost fallacy.
• C) altruism.
• D) overconfidence.

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Definitions:

Cash Flow

The movement of funds into and out of a business or project, critical for maintaining operations and investment activities.

Operating Section

Part of a company's financial statement (specifically, the cash flow statement) that reports on the cash activities related to its primary operations, such as cash receipts and payments from goods and services.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and not expected to be consumed or converted into cash within a year.

Statement of Cash Flows

A financial report showing the cash inflows and outflows from operating, investing, and financing activities over a period.