Kendall was excited to begin her new job after she graduated from college. Which of the following purchases would most likely have the greatest perceived risk for her the day before she begins the job?

A. running shoes
B. a subscription to The Wall Street Journal
C. a new coffee maker
D. flowers to decorate her new apartment
E. an outfit for her first day


Answer: E

Business

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If a negotiable instrument is payable on demand, it is overdue:

A. the day after demand for payment has been made in a proper manner and form. B. 60 days after its date if it is a check. C. 30 days after its date if it is a check. D. 3 days after demand for payment has been made in a proper manner and form.

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Once you’ve aroused the collective curiosity of your audience, if you make them wait before satisfying their curiosity, you are building ______.

Fill in the blank(s) with the appropriate word(s).

Business

What would one expect to occur when cross subsidies are eliminated with the use of activity-based costing (ABC)?

A) That lower-volume products pick up more of their fair share of overhead costs. B) That higher-volume products pick up more of their fair share of overhead costs. C) That lower-volume products will be determined as being unprofitable. D) That higher-volume products will be determined as being unprofitable.

Business

David borrowed $120,000 for his business to be repaid in six equal annual installment. The lender charges 6.5 percent interest on the amount of the loan balance that is outstanding at the beginning of each year. The interest component in the amount of the annual installment will be the smallest at the end of:

A. sixth year. B. first year. C. third year. D. fourth year. E. fifth year.

Business