Which one of the following statements provides an INCORRECT description of the behavioural decision model?
A) Because of bounded rationality managers make satisficing decisions, especially in dealing with ambiguous problems in risky and uncertain conditions.
B) Even with cognitive limitations, competent managers can make perfectly rational decisions in highly ambiguous situations.
C) Managerial decisions are rational only within the boundaries defined by available information.
D) Cognitive limitations make it difficult for managers to become fully informed.
E) Limits exist regarding human information-processing capabilities.

Question

Quizplus · Accepted Answer

The behavioral decision model acknowledges that managers, due to cognitive limitations and bounded rationality, cannot always make perfectly rational decisions, especially in highly ambiguous situations. This contradicts statement B, which inaccurately suggests that managers can make perfectly rational decisions despite these limitations.

Which One of the Following Statements Provides an INCORRECT Description