Simon's Four Different Stages in Decision Making Are, in Order

question 16

Multiple Choice

Simon's four different stages in decision making are, in order from first to last:

• A)identification, choice, design, and implementation.
• B)identification, design, choice, and finalization.
• C)intelligence, choice, design, and implementation.
• D)intelligence, design, choice, and implementation.

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, considered the cost of equity capital.

Security Market Line

A representation in financial models that shows the relationship between the risk of an investment and its expected return.

Dividend Payout Ratio

A metric that measures the portion of a company's earnings paid out to shareholders as dividends.

Market Rate of Return

The average return investors expect to earn from an investment in the general market.