Which of the Following Statements BEST Reflects the Concept of Bounded

question 70

Multiple Choice

Which of the following statements BEST reflects the concept of bounded rationality?

• A) Most consumers make irrational purchasing decisions.
• B) The rise of online communications technologies means that almost anyone can acquire near perfect information about brands and product categories.
• C) Buyers are always looking for shortcuts to minimise the time and effort involved in making purchase decisions.
• D) Most people make decisions with limited information and have a limited ability to collect and process information.
• E) Buyers make the best possible decisions with the limited information they have.

---

Definitions:

Sales Discounts

Reductions in the selling price offered to customers, often as an incentive to encourage prompt payment.

Cash Discount

A deduction from the total amount on an invoice allowed by a vendor to encourage prompt payment.

Accounts Receivable

The money owed to a business by its clients for goods or services delivered but not yet paid for.

Sales Discounts

A reduction in the price of goods or services offered by a seller to a buyer, typically used to encourage prompt payment or to reward customers for bulk purchases.