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Decision making, as explained in the unit, is best described as the process of selecting an alternative that:
AProvides the most efficient means of attaining a desired end
BRequires the least amount of information to evaluate
CEliminates the need to reject any other alternative
DGuarantees a certain outcome free of any risk
Answer & Solution
Correct answer: A. Provides the most efficient means of attaining a desired end
1. Decision making chooses among two or more courses of action.
2. It selects the alternative that gives the most efficient means of attaining a desired end.
3. So the 'most efficient means of attaining a desired end' option is correct.
4. Trap B: it actually requires evaluation of information, so 'least information' is false.
5. Trap C: choosing one alternative necessarily means rejecting the others, not avoiding rejection.
6. Trap D: decisions are taken under conditions of risk and uncertainty, so no guaranteed risk-free outcome exists.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 1 Unit I "Nature and Scope of Business Economics", p.3_
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