The Downside of Taking a Simpler Approach to Decision Making

question 57

Multiple Choice

The downside of taking a simpler approach to decision making is that

• A) it tends to bypass innovative solutions.
• B) an alternative that meets minimum standards of acceptability is chosen.
• C) it limits a decision maker's understanding of the people involved.
• D) only recent events are taken into consideration.

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Definitions:

Amortization

The process of spreading out a loan or intangible asset cost over a specific period of time for accounting and taxation purposes.

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting.

Straight-Line Method

A way of calculating equal depreciation expenses for an asset over its useful life.

Total Interest Expense

The sum of all interest payments made on debts over a specified period.