Satisficing:
A)results from choosing a wrong decision.
B)is a perfect problem solution.
C)replaces sensitivity in corporate decision making.
D)is a result of bounded rationality.
E)constantly leads to overconfidence.

Question

Quizplus · Accepted Answer

Satisficing is a decision-making strategy in which an individual or organization chooses the first alternative that meets their basic requirements, rather than seeking the optimal solution. This approach is a result of bounded rationality, which means that decision-makers have limited information, cognitive resources, and time. Satisficing is not always the perfect solution, but it is a practical way to make decisions under uncertainty and time pressure. It does not necessarily replace sensitivity in corporate decision-making or lead to overconfidence. Choosing a wrong decision is not an inherent characteristic of satisficing.