________ refers to the concept that many managers lack the time and the ability to process all of the alternatives to solve a problem.

• A. Intuition
• B. Satisficing
• C. Bounded rationality
• D. Evidence-based management

Answer: (C)

Bounded rationality describes how managers make decisions when time, information, and cognitive capacity are limited. Because they can’t thoroughly search and evaluate every possible alternative, they settle for a solution that is good enough rather than optimal. This tendency to stop the search once a satisfactory option is found is known as satisficing, which often arises from bounded rationality. Intuition relies on quick, experience-based judgments rather than deliberate search, so it’s not describing the constraint itself. Evidence-based management focuses on using solid evidence to inform decisions, not on the cognitive limits that shape how choices are made.