Your Rent Is Due,but You Are Short $100

question 115

Multiple Choice

Your rent is due,but you are short $100.You find a way around this obstacle to meet the goal of paying the rent by offering to clean your friend's house for $100.You now have enough money to pay your rent.To reach your goal,you have just used the thinking strategy of

• A) reasoning.
• B) decision making.
• C) problem solving.
• D) framing.

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Definitions:

Taxes

Compulsory financial charges imposed by a government on individuals, entities, or transactions to fund public expenditures.

Basic Earning Power

An indicator of a company's profitability from operations, expressed as EBIT (Earnings Before Interest and Taxes) divided by total assets.

Total Assets

The sum of all current and non-current assets owned by an entity as reported on the balance sheet.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all expenses except interest and income tax expenses.