When managers make decisions that are rational but limited by their ability to process the information,they are exhibiting the concept of ________.
A)cognitive decision making
B)bounded rationality
C)escalation of commitment
D)intuitive decision making

Question

Quizplus · Accepted Answer

Bounded rationality refers to the idea that even though managers may try to make rational decisions, they are often limited by their cognitive abilities to process all of the available information. This can lead to decisions that are not fully rational but are still the best possible given the limitations. The other options (cognitive decision making, escalation of commitment, and intuitive decision making) may play a role in decision making, but they do not specifically relate to the concept of bounded rationality.

When Managers Make Decisions That Are Rational but Limited by Their