Sticking with an Option Even When Circumstances Change Is Best

question 185

Multiple Choice

Sticking with an option even when circumstances change is best described as _____

• A)being rational.
• B)inertia.
• C)bounded rationality.
• D)moral hazard.
• E)adverse selection.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

EVA

Economic Value Added, a measure of a company's financial performance based on the residue wealth calculated by deducting its cost of capital from its operating profit.

Investor-supplied Capital

Funds provided by investors to a company, used for business activities and growth.

Operating Income

Revenue from a company’s core business operations, excluding deductions of expenses like cost of goods sold, salaries, and other operating expenses.