Which of the Following Approaches to Decision Making Involves Selecting

question 46

Multiple Choice

Which of the following approaches to decision making involves selecting the best possible alternative?

• A) The minimax approach
• B) The risk-averting approach
• C) The synectics approach
• D) The satisficing approach
• E) The optimizing approach

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Definitions:

Yield 10%

Represents the annual return on an investment, expressed as a percentage of the investment's cost. Here, the investment is expected to return 10% annually.

Bond Interest Expense

The cost that an issuer of bonds incurs over the bond term as interest payments to bondholders, as dictated by the interest rate of the bond.

Floating-rate Debt

A form of borrowing where the interest rate varies over time with market conditions, opposed to fixed-rate debt.

Market Value

Market value is the current price at which an asset or service can be bought or sold in the marketplace.