The Concept of "Bounded Rationality" Advocated by March and Simon

question 29

True/False

The concept of "bounded rationality" advocated by March and Simon disregards the cognitive limitations of the decision maker.

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Homemade Leverage

The use of personal borrowing to adjust the overall level of financial leverage that an individual utilizes in their investments.

Capital Structure

Describes the mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, used to finance its overall operations and growth.