Your Two Best Friends Each Tell You About a Person

question 54

Multiple Choice

Your two best friends each tell you about a person they know who successively started a small business.That's it,you decide,if they can do it so can you.This is an example of _____________.

• A) mental accounting
• B) framing bias
• C) conservatism
• D) representativeness bias

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Definitions:

Current Liabilities

Obligations or debts that a company is expected to pay off within one year or within its normal operating cycle.

Quick Ratio

A measure of a company’s ability to meet its short-term obligations using its most liquid assets, excluding inventory.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business’ normal operating cycle, whichever is longer.

Current Liabilities

Obligations that are due for payment within the next operating cycle or year, including accounts payable and short-term loans.