After Receiving Bad Computer Advice from Mike, Who You Have

question 90

Multiple Choice

After receiving bad computer advice from Mike, who you have a habit of calling for help, you continue to catch yourself dialing his number when you need help. Though frustrating, you should be grateful because

• A) habit ensures that you continue behaviors that have paid off in the past so they don't have to be relearned if they become rewarding again.
• B) S-R associations free working memory that can be devoted to new problems.
• C) S-O associations are only functional with stable outcomes.
• D) R-O associations are working-memory intensive.

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Definitions:

Financial Break-even Point

The level of earnings before interest and taxes (EBIT) where the company's total revenues equals its total expenses.

Real Option

A financial concept representing the choice a company has to undertake certain business decisions, like investment opportunities, waiting for more information before committing.

Option to Wait

The strategic choice to delay a decision or an investment to gather more information or wait for a more favorable market condition.

Option to Abandon

A business decision making tool that allows a company to cease an investment or project if it turns out to be financially nonviable, minimizing losses.