Although There Is a High Rate of Failure for Starting

question 428

Multiple Choice

Although there is a high rate of failure for starting new businesses, people still readily open new businesses every year. These decisions probably would not occur if people did not

• A)ignore the base rate.
• B)use the representative heuristic.
• C)frame this event very broadly.
• D)use a random search strategy for making decisions.

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Definitions:

Manufacturer's Fault

A defect or issue in a product directly caused by the manufacturing process, resulting in consumer dissatisfaction or potential harm.

Negligence

Failure to exercise the care that a reasonably prudent person would exercise in like circumstances.

Occupiers' Liability Act

The Occupiers' Liability Act is legislation that defines the duty of care owed by individuals or entities in control of premises to those who enter the premises.

Volenti No Fit Injuria

A legal principle that means no injury is done to a person who willingly consents to or understands the risk of harm or injury in their actions.