The ability of a manager to be perfectly rational is limited by factors such as cognitive capacity and time constraints. This is known as
A) a heuristic.
B) bounded rationality.
C) escalation of commitment.
D) the illusion of control.

Question

Quizplus · Accepted Answer

Bounded rationality refers to the idea that managers have limited abilities to be perfectly rational due to factors like cognitive limitations and time constraints. Heuristics, escalation of commitment, and the illusion of control are related but different concepts.

The Ability of a Manager to Be Perfectly Rational Is