What Does the Garbage Can Model Show

question 36

Multiple Choice

What does the garbage can model show?

• A) how poor inputs into decision making result in poor decisions
• B) how decisions can be made in mechanistic organizations
• C) four streams of events that influence decision making
• D) decision making in a stable environment

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Definitions:

Soft Rationing

The situation that occurs when units in a business are allocated a certain amount of financing for capital budgeting.

Hard Rationing

The situation that occurs when a business cannot raise financing for a project under any circumstances.

Hard Capital Rationing

A situation where a company is unable to secure additional funding from external sources like equity or debt markets.

NPV Projects

Projects evaluated using the Net Present Value method, which calculates the difference between the present value of cash inflows and outflows over a period.