What Effect Do Mental Models Have on the Decision-Making Process

question 116

Multiple Choice

What effect do mental models have on the decision-making process?

• A)They perpetuate assumptions that make it difficult to see new opportunities.
• B)They allow decision makers to obtain accurate information from the surroundings.
• C)They reduce the importance of developing alternative solutions to the problem.
• D)They allow decision makers to maximize the potential of their decision making.
• E)They help people to be more creative in decision making.

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Definitions:

Financial Information

Data relating to the financial performance, position, and cash flows of a business, which is used by stakeholders to make economic decisions.

Return on Total Assets

A profitability ratio that measures net income produced by total assets within a period.

Financial Information

Data that pertains to the financial status, performance, and changes in financial condition of an entity.

Days' Sales Uncollected

A measure of how quickly a company converts its accounts receivable into cash, indicating the average number of days sales remain uncollected.