Which of the following is true about the definition of bounded rationality?
A) Managers rely on their inborn ability to synthesize information quickly and effectively.
B) Managers have access to complete and accurate information for making a decision.
C) Managers adhere to rules of thumb when making decisions.
D) Statistical probabilities can be attributed to alternative potential outcomes.
E) Managers do not always have access to the resources required to make rational decisions.

Question

Quizplus · Accepted Answer

Bounded rationality suggests that managers do not always have access to complete and accurate information or the necessary resources to make fully rational decisions. As a result, they may rely on shortcuts or rules of thumb to make decisions that are "good enough" given the constraints they face. This approach acknowledges the limitations of human cognition and decision-making in complex, uncertain environments.

Which of the Following Is True About the Definition of Bounded