Scenario D

question 121

Multiple Choice

Scenario D. Effectively Organized, Inc. has hired a consultant to help them with organizational decision making. The consultant's first meeting is set up to describe to the managers of Effectively Organized, Inc. the models of organizational decision processes. Each of the managers seems to prefer one of the models over the others.
-The President of Effectively Organized,Inc.responds most positively to the model that is the most cautious.She explains that the budget process is the easiest decision for her because she breaks it into smaller pieces and builds the decisions as she goes.The President seems to prefer which model?

• A)Bounded rationality
• B)The incremental model
• C)The garbage can model
• D)The coalitional model
• E)The crisis model

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Definitions:

Cash Flow To Creditors

The amount of cash companies pay to their creditors and lenders, including payments for interest and principal on debt.

Cash Flow To Shareholders

Dividends paid out by a firm less net new equity raised.

Capital Gains

The profit that results from a sale of a capital asset, such as stock, bond, or real estate, where the sale price exceeds the purchase price.

Eligible Dividends

Dividends that are qualified for preferential tax treatment under certain tax laws.