"Satisficing" Rather Than "Maximizing" Primarily Emerges Under Conditions Where

question 142

Multiple Choice

"Satisficing" rather than "maximizing" primarily emerges under conditions where

• A)information is costly.
• B)management lacks ambition.
• C)profit maximization is rejected on moral grounds.
• D)risk is minimal.

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Definitions:

Operations

The day-to-day activities involved in the running of a business or production of goods and services.

Investment Center

A business segment or unit within an organization for which the manager has control and is responsible for its revenue, expenses, and the assets invested in the center.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Residual Income

The amount of income that exceeds the minimum target return, often used in performance measurement and managerial compensation.