When a Decision Maker Is Faced with Several Decision Alternatives

question 12

Multiple Choice

When a decision maker is faced with several decision alternatives and an uncertain set of future events. He/She uses ______ to develop an optimal strategy.

• A) utility theory
• B) predictive analytics
• C) data mining
• D) decision analysis

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Definitions:

Direct Approach

A method in financial statement reporting that presents major classes of operating cash receipts and payments.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments, reflecting how cash is spent on investments to grow or maintain the business.

Financing Activities

Transactions and events where a business obtains funds or pays back funds to owners and creditors, typically reflected in the cash flow statement.