The Rational Choice Model of Decision Making Is Rarely Practiced

question 30

Multiple Choice

The rational choice model of decision making is rarely practiced in reality because:

• A) it ignores the fact that problems must be defined before alternatives are chosen.
• B) it assumes that human beings make decisions based on their emotions.
• C) it assumes that people are efficient and logical information processing machines.
• D) it ignores the fact that people evaluate their decision after an alternative has been chosen and implemented.
• E) all of these statements are correct.

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Definitions:

Revised Model Business

A business model that has been updated or adjusted to reflect changes in the market, technology, or company strategy.

Owners' Equity

Owners' equity represents the residual interest in the assets of a company after deducting liabilities, often referred to as shareholders' equity.

Legal Distributions

Payments made by a company to its shareholders or owners as declared in its corporate charter or bylaws and approved by regulators.

Book Value

Represents the value of an asset according to its balance sheet account balance, taking into account the cost of the asset and any depreciation or amortization.