According to Simon's Bounded Rationality, Which of the Following Factors

question 42

Multiple Choice

According to Simon's bounded rationality, which of the following factors prevents decision makers from being truly rational?

• A)They have complete information about alternatives and consequences.
• B)The problems they face are too simple and require little thought.
• C)Human beings are not exposed to very much information.
• D)People have too much time on their hands and overthink decisions as a result.
• E)People, including those in the same organization, have conflicting goals.

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Definitions:

Retention Ratio

The proportion of net income that is retained by a company rather than distributed to its shareholders as dividends.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets, measuring how efficiently assets are utilized.

External Funding Requirement

The amount of money needed to be raised from external sources to finance the planned activities or investments of an organization or project.

Growth In Assets

An increase in a company's or individual's asset base over a specific period.