Consumer Expectations Have Two Components: (1) the Probability That Something

question 97

Multiple Choice

Consumer expectations have two components: (1) the probability that something will occur and (2) _____.

• A) the probability that that event will be positive
• B) the probability that that event will produce a satisfactory outcome
• C) a desire for that outcome to occur
• D) an evaluation of that potential occurrence
• E) the motivation by the consumer wanting it to occur

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Definitions:

Preferred Shares

A class of ownership in a corporation that provides a higher claim on assets and earnings than common shares; dividends must be paid on these shares before any can be distributed to common shareholders.

Dividend Income

Earnings distributed to shareholders from the profits achieved by a company, often calculated per share and paid out in cash or additional shares.

Fair Value

An estimated market value of an asset, liability, or financial instrument, determined based on the current market conditions and not its historical cost.