There Are Two Parts to This Question;be Sure to Answer

question 32

Essay

There are two parts to this question;be sure to answer both.Explain four of the hindrances to perfectly rational decision making,and explain how each might apply to a manager who is trying to decide whether to start sourcing some of its products from overseas markets.

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Definitions:

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Profitability of Assets

Profitability of Assets assesses how effectively a company uses its assets to generate profits, typically measured as a ratio of net income to total assets.

Common Stockholders

Owners of common shares in a corporation, who have voting rights and are entitled to dividends as declared by the company's board of directors.

Earnings Per Share

A financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, measuring its profitability on a per-share basis.