According to Prospect Theory,people

question 31

Multiple Choice

According to prospect theory,people

• A) separate small gains from large losses.
• B) separate small losses from large losses.
• C) separate small gains from large gains.
• D) don't separate losses from gains.
• E) separate all losses from all gains.

---

Definitions:

Overconfident Manager

A business leader who has excessive belief in their own ability to make decisions and forecasts, potentially leading to suboptimal business outcomes.

Risky Projects

Initiatives or investments that carry a high degree of uncertainty or hazard, with the potential for significant returns or losses.

Company Cash

Monetary resources that a corporation holds in its accounts, which are liquid and can be used for operational expenses, investments, or other purposes.

Mergers and Acquisitions

Business strategies involving the consolidation of companies or assets, through different types of financial transactions, including merger or takeover.