Otis, the Manager of a Camera Store, Believes That His

question 9

Multiple Choice

Otis, the manager of a camera store, believes that his store may be closed by corporate in the near future, so he cannot sleep well at night and he is dealing with severe anxiety and irritability, and he has been ill several times this month. Several times Otis has missed important details in his job, and he almost got in an automobile accident this morning. The district manager is coming today to do his bimonthly evaluation of Otis's store. Although Otis usually performs well, he is worried about this one. His district manager may be influenced by ________ bias.

• A) availability
• B) hindsight
• C) framing
• D) overconfidence
• E) sunk-cost

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Definitions:

Average Rate

The average rate is a mean exchange rate over a specified period, used for accounting purposes to convert foreign currencies into the functional currency.

Foreign Exchange Gain

A profit resulting from changes in the exchange rate between the base currency and the foreign currency in which a transaction is denominated.

Exchange Loss

A financial loss that occurs when the value of a currency decreases relative to another currency in transactions involving foreign exchange.

Year End

The end of the financial year for a company, marking the close of the reporting period.