The Assumption That Managers Make Consistent, Value-Maximizing Choices Within Specified

question 58

Multiple Choice

The assumption that managers make consistent, value-maximizing choices within specified constraints is known as which of the following?

• A) rational decision-making
• B) unbounded rationality
• C) organized decision-making
• D) optimal decision-making
• E) objective rationality

---

Definitions:

Notes Receivable-Perez

A note receivable account representing money owed to the entity by Perez, typically documented through a formal promissory note.

Collateralized

Secured by an asset pledged as security for repayment of a loan, protecting the lender by providing a source of recovery in case of default.

Receivables

Amounts owed to a company by customers for goods or services that have been delivered but not yet paid for.

Without Recourse

A term indicating that the seller of an asset is not responsible for the buyer's inability to collect any debts or obligations related to the asset.