Which of the Following Is an Example of a Positive

question 17

Multiple Choice

Which of the following is an example of a positive incentive?

• A)Jim expects to be grounded if his grades slip below a B average
• B)Sam expects to receive a scholarship if his grades remain high.
• C)Desserts will be unavailable at the cafeteria if you arrive after 7:00 p.m​
• D)The college campus police institutes a policy of impounding cars parked in delivery zone spaces.
• E)Sam chooses piano lessons over martial arts classes.

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Definitions:

Inflation

The speed at which the overall cost of goods and services increases, in turn diminishing the buying power.

Present Value

The now value of a future cash flow stream or lump sum, discounted by a chosen rate of return.

Growing Annuity

A series of periodic payments that grow at a constant rate for a defined number of periods.

Cash Flow Growth Rate

The rate at which a company's cash inflow (from operations, investing, and financing) is growing over a specified period of time.