The Type of Thinking a Manager Engages in to Reflect

question 5

Multiple Choice

The type of thinking a manager engages in to reflect and examining one's own thoughts, beliefs, and assumptions while making a decision is called:

• A) Strategic
• B) Retrospective
• C) Introspective
• D) Prospective
• E) None of the above

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Definitions:

Cash Basis

An accounting method in which revenues and expenses are recorded only when cash is received or paid out.

Zero NPV

A situation where the net present value of a project or investment equals zero, indicating that the expected cash flows exactly discount the initial investment, resulting in no net gain or loss.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.

Cash Basis

An accounting method where revenue and expenses are recorded only when cash is received or paid, respectively.