Which of the Following Students Exhibits Satisficing Behavior

question 345

Multiple Choice

Which of the following students exhibits satisficing behavior?

• A)Mick studies his economics notes every night so that he can be sure to earn a perfect score on his exam.
• B)Bill studies his economics notes for a few hours the night before the test because he will be satisfied with a C on his exam.
• C)Marguerite studies extensively as she will only be satisfied with a very high score.
• D)None of these students exhibits satisficing behavior.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of a business, but not control them completely, typically associated with ownership of between 20% and 50% of voting stock.

Fair-value Method

An accounting strategy used for valuing and assessing assets and liabilities based on current market prices or estimates.

Equity Method

An accounting technique used to assess the earnings of an investment in another company by recognizing the income earned proportional to ownership interest.

Accounting Principle

A guideline or rule that shapes the theoretical basis for accounting practices and financial reporting.