Answer:
Irrational decision
Explanation:
Irrational decisions refer to those decisions which are not taken after enough deliberation, ignore the rationale, facts and logic, are rather decided out of whim and impulse and usually instantly decided.
In the given case, Joe was not willing to pay more than $500 cash yet eventually ended up paying $600. Even if the $25 gift card is considered, he ended up paying $575 which is more than he had decided to pay.
The choice of the consumer here is not rational or rather irrational since, he without considering other alternatives or exercise of judgement, without evaluating his costs, impulsively opted for the credit card lured by $25 gift card.
As per the economic theory, Joe's decision would be referred to as irrational.
Answer: problem-solving teams
Explanation: group of individuals assembled to work on a project that involves resolving one or more issues that have already arisen or to deal effectively with issues as they arise. In a business context, a problem solving team will typically be formed for a limited time frame incorporating staff from different organizational levels with various relevant skill sets.Problem Solving Teams are temporary structures that bring together leaders and team members from across the organization to focus on solving a specific problem. The benefits are many, including not just a solved problem, but also a more resilient organization, a stronger social network and a growing cohort of problem solvers with increased skills and abilities. This approach draws from many influences, including complexity science, social network theory, military doctrine, flight crews, and emergency responders. We have been experimenting with this approach across several areas that involve multiple geographies and multiple functions.
Answer:
change; over-estimates
Explanation:
Substitution bias refers to a tendency in which economic index numbers don't include information about the changes in consumer spending when they switch expensive products for cheaper ones or buy less units as prices change. This changes are not reflected in the market basket from which the CPI is built which can cause inflation rates to be over-estimated.
Answer:
Bond,treasury
Explanation:
A bond refers to the contract between borrower and lender stipulating that the borrower must pay periodic interests and principal on specified dates .
The interest is also known as coupon payment has fixed rate usually quoted in the bond agreement which could be paid annually or semi-annually to te lenders.
Treasury refers to the bond issued by the national government such as the U.S government and carries a lower rate of return as the risk attached too is low ,hence lower risk brings about lower return since the government is not likely to default in discharging its obligations
Answer:
Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$10 per share. Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax.
Assume that all compensation expense from the stock options granted by Wilson already has been recorded. Further assume that 200,000 options expire in 2014 without being exercised. The journal entry to record this would include
