Matt has some great Christmas gifts for sale but not enough people come into his shop and see them. They tend to shop at bigger retailers instead. He can’t afford media advertising and so he decides to offer Christmas crackers for one penny each (well below what they cost him) to draw customers in. He puts a notice in the window advertising this bargain. What tactic is he using here?
a. predatory pricing
b. psychological pricing
c. retail pricing
d. discounts
e. a loss leader
e. a loss leader
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Alex, Bob, and Ciera are partners, sharing income 2:1:2. After selling all of the assets for cash, dividing gains and losses on realization, and paying liabilities, the balances in the capital accounts are as follows: Alex, $10,000 Cr; Bob, $10,000 Cr; and Ciera, $30,000 Cr. How much cash should be distributed to Alex?
a. $6,000 b. $20,000 c. $10,000 d. $16,667
Installment accounts receivable covering periods longer than twelve months are classified as long-term assets
Indicate whether the statement is true or false
Another term for hindsight bias is ______.
A. Hubris B. I-knew-it-all-along effect C. escalation of commitment D. overconfidence
The ________ of influencing attempts to arouse people's enthusiasm.
What will be an ideal response?