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Question

A manager's freedom to make totally rational decisions is restricted by internal and external environmental factors and by the manager's own characteristics and decision-making ability. This concept is known as _________

A Behavioural rationality Correct Answer Incorrect Answer
B Objective Rationality Correct Answer Incorrect Answer
C Bounded rationality Correct Answer Incorrect Answer
D Limited rationality Correct Answer Incorrect Answer
E Subjective Rationality Correct Answer Incorrect Answer

Solution

The theory of bounded rationality holds thatan individual's rationality is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.

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