Kahneman and Tversky used experiments to examine how people actually make decisions about risk. The researchers found a multi-step process with editing and evaluating phases. People showed a strong preference to avoid losses, much more than probability or expected value would suggest. Their name for this process is .

Afirm wants to strengthen its financial position. which of the following actions would increase its current ratio? a. reduce the company's days' sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment.b. use cash to repurchase some of the company's own stock.c. borrow using short-term debt and use the proceeds to repay debt that has a maturity of more than one year.d. issue new stock, then use some of the proceeds to purchase additional inventory and hold the remainder as cash.e. use cash to increase inventory holdings.