Game Theory/Behavioral Economics
Confirmation bias
tendency to search for information that confirms one's preconceptions
Credit
The ability to borrow money or access goods or services with the understanding of repayment.
True or False: goals in MBO should be easy to complete.
False
Which of the following is not typically a fixed expense?
School tuition
Medical bills
Mortgage payment
Memberships
Medical bills
Herd mentality
tendency to conform to the behaviors and beliefs of the people around you
3 types of credit
Open, Installment, Revolving
A document that details a company's goals and how it intends to achieve them is called?
Comprehensive Business Plan
Which describes people’s tendency to more likely retain an object they own than acquire that object when they do not own it.
Endowment Effect
Availability Heuristic
Confirmation Bias
Reciprocity Bias
Endowment Effect
Prisoner's dilemma
a well-known thought experiment between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
Name the debt repayment method that involves making minimum payments on all debts, then using extra money to pay off the one with the highest interest rate.
Avalanche
3 Advantages of Management by Objectives (MBO)
Tailored goals boost confidence and enthusiasm
Enhanced communication
Performance Measurement
Sets clear expectations/Accountability
Regular feedback
In game theory, what is used as a visual representation of the possible outcomes of a strategic decision?
Possibilities Allocation Graph
Strategic Blueprint Table
Decision Matrix
Payoff matrix
Payoff matrix
Backward induction
Solving a sequential game by starting at the end and working backward.
This debt repayment method involves listing all due balances in ascending order, targeting the smallest debt first by allocating any extra money towards it. What is it called?
Snowball
Which of the following is included in the Market Analysis section of a comprehensive business plan?: leadership, mission statement, benefits to the consumer, financial statements, competition.
competition
Money left over after a person pays their taxes and essential goods and services like housing and food is called:
Discretionary Income
Passive Income
Dividend Income
Taxable Income
Discretionary Income
Nash Equilibrium
A situation where no player could gain by changing their own strategy.
five FICO credit score factors
Payment History, Amounts Owed, Length of Credit History, New Credit, Credit Mix
What is the name of the comprehensive business plan component in which you can find the following information: balance sheets, financial statements and funding requests.
Financial Plans
Which of the following would not be included in the Executive Summary part of a Comprehensive Business Plan?
Target Customers
Locations
Leadership
Mission Statement
Target Customers