The Classical Model of Decision Making Is Considered to Be

question 30

Multiple Choice

The classical model of decision making is considered to be __________, which means that it defines how a decision maker should make decisions, whereas the administrative model of decision making is considered to be __________, meaning that it describes how managers actually make decisions in complex situations rather than dictating how they should make decisions according to a theoretical ideal.

• A) normative; descriptive
• B) normative; prescriptive
• C) descriptive; normative
• D) descriptive; prescriptive
• E) analytic; normative

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Definitions:

Investment Freedom

Investment freedom refers to the ease with which individuals and corporations can move their resources into and out of a country's financial market without encountering barriers or restrictions.

Financial Freedom

The state of having sufficient personal wealth to live, without having to work actively for basic necessities, allowing an individual to enjoy life and pursue personal interests.

Risk Insurance

A financial product or service that provides protection against potential future losses or damages, typically involving the transfer of risk from an individual or business to an insurance company in exchange for premiums.

Political Risks

The uncertainties and potential losses that businesses may face due to political changes or instability in a country.