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March and Simon Developed Three Important Concepts in Their Administrative

question 80

Essay

March and Simon developed three important concepts in their administrative model of decision making. Discuss these three concepts.


Definitions:

Ledger Accounts

Records within a ledger that show the transaction history and current balance of each account.

Owner's Drawings Account

An account that tracks the amount of money a business owner withdraws from the company for personal use.

Revenue Accounts

Accounts that record the income generated by a company from its normal business operations or activities.

Liability Accounts

Accounts on the balance sheet that represent obligations or debts a company owes to others.

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