After Fernanda Buys Stock in a ''Hot'' New Start-Up Company

question 71

Multiple Choice

After Fernanda buys stock in a ''hot'' new start-up company, the company fails and she loses all of her money. Fernanda no longer invests in start-up companies. This is an example of:

• A)negative reinforcement.
• B)higher order conditioning.
• C)positive punishment.
• D)negative punishment.

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Definitions:

Relevant Cost

Costs that should be considered when making business decisions because they will be affected by the decision.

Special Order

An order for goods or services that is outside the company's regular scope of products or services and often tailored to a customer's specific requirements.

Additional Set-up Costs

Expenses incurred to prepare equipment or processes for manufacturing a new product or for a new production run, often not included in the standard operating costs.

Management Accountant

A professional who specializes in providing financial reporting and analysis to assist in managerial decision-making.