How does the ability to pay for a purchase on credit affect the buying situation?
A. Buying things on credit links the consumption experience with the payment for that same purchase.
B. The ability to pay with credit decreases the amount consumers are willing to pay for an item.
C. Using credit to pay for purchases takes away the "pain" of paying for something.
D. Paying with credit activates the pain centers of the brain in a negative way.
Answer: C
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Diamond, Inc purchased a machine under a deferred payment contract on December 31 . 2013 . Under the terms of the contract, Diamond is required to make eight annual payments of $140,000 each beginning December 31 . 2014 . The appropriate interest rate is 8 percent. The purchase price of the machine is
a. $1,389,190. b. $1,120,000. c. $868,900. d. $804,530.
Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following is not considered a human behavior problem?
A) Setting goals among managers that conflict with one another. B) Setting goals too tightly making it difficult to meet performance expectation. C) Allowing employees the opportunity to be a part of the budget process. D) Allowing goals to be so low that employees develop a "spend it or lose it" attitude.
Investments with long maturities would not include
A) common stocks. B) preferred stocks. C) corporate bonds. D) put and call options.
The example of one project in Africa being paid in goat skins is an example of the environmental factor of infrastructure.
Answer the following statement true (T) or false (F)