The Maximin Criterion Refers To

question 35

Multiple Choice

The maximin criterion refers to:

• A)minimizing the maximum return
• B)maximizing the minimum return
• C)choosing the alternative with the highest payoff
• D)choosing the alternative with the minimum payoff
• E)None of the above

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Definitions:

Specific Account Receivable

This pertains to a distinct claim for payment for goods sold or services provided on credit that is owed to a company by its customer.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, indicative of the company’s profitability.

Short-term Receivables

Amounts due to a company that are expected to be received within one year from the date of the balance sheet.

Fair Value

The cost one would incur to sell an asset or to assume a liability during a structured exchange with participants in the market at the time of assessment.