What is a heuristic? Describe two common types of heuristics used in organizational decision-making
What will be an ideal response?
Heuristics are simple rules of thumb that are used to make quick decisions about complex problems. Available heuristic refers to the tendency for people to base their judgments on information that is readily available to them. Representative heuristic refers to the tendency to perceive others in stereotypical ways, if they appear to typify of the category to which they belong.
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You have complete information about a company's balance sheet liabilities: Owners' equity $150 million and Debt $50 million. On the other hand. all you know about its assets is $20 million cash. What is the company's leverage ratio?
a) 0.333 b) 1.333 c) 0.133 d) 1.200 e) 1.467
To be effective, discipline must meet which of the following criteria?
A. morality and corruption B. meaningful and enforceable C. thrifty and honesty D. None of these are correct.