Lamp Shade Imports (Scenario)

question 101

Multiple Choice

Lamp Shade Imports (Scenario)
The ABC Lamp Company is an SME that designs and manufactures high quality lamps that are sold in high-end furniture stores across Canada and the United States. ABC imports lamp shades from Asia where costs are lower than in North America. ABC has received a large order from a hotel chain that wants to purchase 5,000 lamps in the next three months, and ABC will need to import corresponding lamp shades. ABC recently ended a relationship with a Chinese supplier due to the poor quality of shades that were shipped. ABC managers are seeking a new Asian supplier that can fill the hotel lamp order.
-ABC managers have located a small Asian supplier that can fill the order, but the supplier will need to draw on a substantial amount of its working capital. From which of the following would the supplier most likely seek financial assistance?

• A) factoring house
• B) local commercial bank
• C) World Bank Group
• D) Asian Development Bank

---

Definitions:

Illusory Correlation

A cognitive bias in which a relationship between two variables is perceived to exist when in fact there is none or it is much weaker than assumed.

Dreams

Mental experiences during sleep, often containing imagery, thoughts, and emotions, which can range from mundane to deeply symbolic.

Future Events

Occurrences or situations that have not yet happened but are anticipated or expected to occur.

Illusory Correlation

An illusory correlation refers to the perceived relationship between two variables when no such relationship exists in reality, often leading to erroneous conclusions.