According to March and Simon, Humans Are Limited in Their

question 53

Multiple Choice

According to March and Simon, humans are limited in their ability to interpret, process, and act on information.When the number of suitable alternatives are greater than what a manager can evaluate, Marc and Simon refer to this as

• A)prior-hypothesis.
• B)bounded rationality.
• C)productive blocking.
• D)illusion of control.
• E)satisficing ambiguity.

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Definitions:

Voting Common Stock

Shares of a corporation giving holders the right to vote on corporate matters, such as the election of the board of directors.

Straight-Line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its expected useful life.

Intra-Entity Bonds

Intra-Entity Bonds refer to bonds issued between entities within the same corporate group, used for internal finance restructuring or other strategic purposes.

Amortization

The gradual write-off of the cost of an intangible asset over its useful life.