Which of the Following Assumption Is Made While Pursing the Rational

question 44

Multiple Choice

Which of the following assumption is made while pursing the rational model of decision making?

• A) The problem or opportunity is unclear.
• B) Decision makers are not rational.
• C) The firm's objectives are unclear.
• D) Decision makers are not biased.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with dividends that are paid out before those of common shareholders.

Common Stock

Shares representing ownership in a corporation, giving holders voting rights and a claim on a portion of the company’s profits through dividends.

Dividend

a distribution of a portion of a company's earnings to its shareholders, usually in cash or additional shares.

Convertible Preferred Stock

Preferred stock that gives the owner the option of converting those preferred shares into a stated number of common shares.