The Assumption That People Are Rational and Primarily Interested in Economic

question 10

Multiple Choice

The assumption that people are rational and primarily interested in economic incentives from their work is the underlying assumption of which approach to management thought?

• A) Socioeconomic approach
• B) Modern approach
• C) Quantitative approach
• D) Classical approach
• E) Behavioural approach

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Definitions:

Total Value

The overall financial value of an entity or asset, calculated by summing all components of worth.

Lump Sum Payment

A large, one-time payment made for a particular purpose, rather than a series of smaller installments.

Compounded Annually

Interest on an investment or loan is calculated annually on both the initial principal and previously accumulated interest.

Loan

Borrowed capital that is expected to be repaid with interest by the borrower to the lender at a future date.