Herbert Simon Describes a Process by Which a Manager Selects

question 31

Multiple Choice

Herbert Simon describes a process by which a manager selects the first alternative that will meet the necessary criteria for a solution. He called this

• A)satisficing
• B)standard operating procedure
• C)settling
• D)none of the above

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Definitions:

Authorized Shares

The maximum number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.

Cultural Issue

Challenges and considerations arising from the varied beliefs, practices, norms, and values of different cultural groups.

Business Judgment Rule

A principle that protects corporate directors and officers from liability for decisions made in good faith and in the belief that they were acting in the best interest of the company.