Shania must submit paperwork to participate in her company's flexible medical benefits program. She has been employed for over a year and has not yet submitted the form. Which type of irrational behavior does this describe? a. status quo bias b. mental accounting C. loss aversion d. risk aversion

Shania must submit paperwork to participate in her company's flexible medical benefits program. She has been employed for over a year and has not yet submitted the form. Which type of irrational behavior does this describe? a. status quo bias b. mental accounting C. loss aversion d. risk aversion

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter4: Professional Legal Liability

Section: Chapter Questions

Problem 15RQSC

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

16. Shania must submit paperwork to participate in her company's flexible medical benefits program. She has been employed for over a
year and has not yet submitted the form. Which type of irrational behavior does this describe?
a. status quo bias
b. mental accounting
C. loss aversion
d. risk aversion

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