Greg is considering purchasing a new truck, and he wants to purchase the best one within his budget. He has searched the Internet, asked friends, and visited dealerships to learn more about the different brands and their features. He even found one website where he can conduct direct comparisons of different brands to help him in his decision. Which decision-making perspective is Greg following?

A) Experiential decision making
B) Behavioral decision making
C) Complete decision making
D) Utilitarian decision making
E) Rational decision making

E) Rational decision making

Explanation:

Based on the scenario being described within the question it can be said that Greg is following a rational decision making perspective. This perspective focuses on a process that favors making decisions based on  logic, objectivity, and analysis over subjectivity and insight. Which in this case, focusing on making the best overall purchase for the budget that Greg is on is the most logical and financially correct decision, therefore it is a rational decision.

Rs. 120,000

Explanation:

At the end of the year, both assets and liabilities had doubled. New asset and liability figures are therefore:

Assets = Rs. 200,000

Liabilities = Rs. 100,000

Net income is part of equity and as there is no equity, net income must be the entire equity.

Assets = Equity + Liabilities

200,000 = Equity + 100,000

Equity = 200,000 - 100,000

= Rs. 100,000

From this Net income, dividends were distributed to the tune of Rs. 20,000. This should be added back to see the full figure.

= 100,000 + 20,000

= Rs. 120,000