According to the satisficing model of management behavior, the goal of a firm is to:
A) satisfy customers, employees, and shareholders.
B) maximize the gain to society and not just to shareholders.
C) achieve a satisfactory level of performance against a benchmark.
D) maximize sales revenue and not necessarily the value of the firm.
E) maximize its market share even at the cost of profit.

Question

Quizplus · Accepted Answer

The satisficing model of management behavior suggests that the goal of a firm is to achieve a satisfactory level of performance against a benchmark, rather than maximizing profits or satisfying all stakeholders. This means that managers seek to make decisions that lead to acceptable results, rather than searching for the best possible outcome. This approach recognizes the limitations of information and resources, as well as the complexity of the business environment.

According to the Satisficing Model of Management Behavior, the Goal