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Bob Johnson is the sole stockholder of Johnson's Carpet Cleaning Service. Bob purchased a personal automobile for $10,000 cash plus he took loan for $20,000 in his name. Describe how this transaction is related to the business entity concept.
Heuristics
Mental shortcuts or "rules of thumb" that simplify decision-making processes, often used unconsciously.
System I
A term from cognitive science referring to the fast, automatic, and often unconscious way of thinking, contrasted with slower, more deliberate thought.
Dual-Process Theory
The proposal that judgment involves two types of thinking: a fast, efficient, but sometimes faulty set of strategies, and a slower, more laborious, but less risky set of strategies.
System II
Often refers to a mode of thinking that is slower, more deliberative, and more logical than fast, automatic, intuitive responses (System I thinking).
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