In a short essay, discuss bounded rationality and satisficing

What will be an ideal response?

Answer: Perfect rationality requires that the decision maker face a clear and unambiguous problem with a clear and specific goal and have knowledge of all possible alternatives for his or her decision and all outcomes and consequences that result from choosing each one of those alternatives. In the real world, these conditions are almost never met. Rather than address the virtually impossible chore of identifying all alternatives and outcomes of the decision, the decision maker chooses to apply bounded rationality, which limits the scope of the decision to just some, rather than all, alternatives and consequences. Bounded rationality requires the decision maker to satisfice, or choose a "good enough" solution to the problem, rather than maximize his or her decision by identifying the perfect rational solution.

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On a balance sheet, the sum of total liabilities plus owners' equity must equal what total?

What will be an ideal response?

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Under the cash basis of accounting, revenues are recognized when cash is received, regardless of when it is earned

a. True b. False Indicate whether the statement is true or false

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