Richie Just Spent $1,000 Fixing His Car Even Though the Mechanic

question 53

Multiple Choice

Richie just spent $1,000 fixing his car even though the mechanic told him the car will continue to need expensive repairs that may total more than the vehicle is worth. Richie is likely experiencing the _____.

• A) personal fable
• B) sunk cost fallacy
• C) base rate neglect
• D) invincibility fable

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Definitions:

General Partner

A full partner with unlimited liability for the debts of the partnership.

Limited Partnership

A partnership consisting of at least one general partner, who manages the business and is personally liable for debts, and one or more limited partners, who invest but do not participate in management.

Partnership Interest

The share or portion of a partnership owned by one of the partners, including rights to its profits.

Capacity at Law

The ability of an entity or individual to enter into legally binding contracts and to sue or be sued.