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Which decision-making model assumes managers act completely rationally, have full information, and evaluate all possible alternatives objectively?

ABounded Rationality Model
BRational Decision-Making Model
CAdministrative Model
DIntuitive Decision Model

Explanation

• The Rational Decision-Making Model assumes complete information, objective problem definition, known preferences, and optimal decision outcomes.
• Herbert Simon challenged this with ‘Bounded Rationality’, stating cognitive limits cause managers to ‘satisfice’ rather than optimize.
• Satisficing means selecting the first solution that meets minimum acceptable criteria.

Exam Relevance
  • Topic: Decision Making
  • Subtopic: Decision Making Models
Submitted by: mcqstutor Team More Management MCQs →

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