Which of the Following Statements Is True of the Classical

question 21

Multiple Choice

Which of the following statements is true of the classical decision model?

• A) It proposes that managers take optimizing decisions after considering available alternatives.
• B) It holds that managers act only in terms of their perceptions, which are frequently imperfect.
• C) It takes into account the cognitive limitations that prevent managers from being fully informed.
• D) It addresses the complexities involved in decision making in uncertain and risk environments.

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Definitions:

Cash Inflow

The amount of money being transferred into a business, project, or account, usually from operational, investing, or financing activities.

Cash Inflows

The total amount of money received by a company or an individual, from various sources, over a period of time.

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it’s the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Investment Proposals

Formal plans or suggestions put forward for consideration or discussion, especially one concerning financial investment.