The Tendency to Perceive and Approach Problems in the Same

question 86

Multiple Choice

The tendency to perceive and approach problems in the same ways that have worked in the past is called ________. This barrier to problem-solving can inhibit one's ability to generate alternative solutions.

• A)means-end analysis
• B)functional fixedness
• C)prototypical idealisation
• D)mental set

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

FCFF

Free Cash Flow to the Firm; a measure of financial performance that shows how much cash is generated by a company after accounting for capital expenditures and operating expenses.

EBIT

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

Depreciation

The gradual reduction in the fair market value of tangible assets over time due to use, wear, and tear or obsolescence.