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Two Tools That Are Particularly Useful in Understanding the Cash

question 20

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Two tools that are particularly useful in understanding the cash requirements of a business and in estimating how much financing a new business will require are the cash flow break-even analysis and the cash budget.


Definitions:

Positive Punishment

Adding an unfavorable outcome or event following an undesired behavior to decrease the likelihood of that behavior happening in the future.

Negative Punishment

The removal of a desirable stimulus following a behavior, intended to decrease the likelihood of that behavior occurring again.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, influencing the probability of behavior being repeated.

Classical Conditioning

A method of learning that happens when an environmental trigger is associated with a naturally existing stimulus, yielding a trained reaction.

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