Question 1

When generating alternatives,managers must never generate a set of feasible alternative courses of action to take in response to the opportunity or threat.

Accepted Answer

A) True 
 B)False

Question 2

When a sales manager views the poor performance of his or her sales agents as resulting from their laziness rather than to the innovative product line of a competitor,this is a fundamental attribution error.

Accepted Answer

A) True 
 B)False

Question 3

If a manager is not sure if a certain business practice is ethical,he or she should seek advice,if possible,from the company's ethics ombudsperson.

Accepted Answer

A) True 
 B)False

Question 4

When Ford Canada limits its search for new suppliers to an existing set of alternatives known to the purchasing manager,they are using a satisficing strategy.

Accepted Answer

A) True 
 B)False

Question 5

When Walmart tried to use the same model that worked for them in the USA in the rest of the world,they were acting on a representative bias.

Accepted Answer

A) True 
 B)False

Question 6

Decisions that protect the environment,promote social responsibility,respect cultural differences,and provide an economic benefit are known as sustainability decisions.

Accepted Answer

A) True 
 B)False

Question 7

Decision making involves analyzing options and making determinations about specific organizational goals and courses of action.

Accepted Answer

A) True 
 B)False

Question 8

An ethical decision is a decision that reasonable or typical stakeholders would find acceptable because it aids shareholders,the organization,or society.

Accepted Answer

A) True 
 B)False

Question 9

Managers who have a moderate commitment to social responsibility,and a willingness to do more than the law requires if asked is known as a(n):

Accepted Answer

A) Obstruction approach 
B) Defensive approach 
C) Accommodative approach 
D) Proactive approach 
E) Distributive justice

Question 10

A cognitive bias resulting from the tendency to base decisions on strong prior beliefs even if evidence shows that those beliefs are wrong is known as:

Accepted Answer

A) systematic errors 
B) representative bias 
C) escalating commitment 
D) illusion of control and overconfidence bias 
E) prior hypothesis bias

Question 11

A representative bias occurs when decision makers generalize from an isolated or individual case.

Accepted Answer

A) True 
 B)False

Question 12

A manager decided to continue to purchase insurance from a company that charged high premiums,even though the manager knew that he or she could get the same coverage for less.This is an example of what type of cognitive bias?

Accepted Answer

A) Systematic errors 
B) Representative bias 
C) Escalating commitment 
D) Illusion of control and overconfidence bias 
E) Prior hypothesis bias

Question 13

A manager decided to continue to purchase insurance from a company that charged high premiums,even though the manager knew that he or she could get the same coverage for less.This is an example of illusion of control.

Accepted Answer

A) True 
 B)False

Question 14

Managers who are rational in their way of thinking and have a low tolerance for ambiguity have which decision-making style?

Accepted Answer

A) Analytic 
B) Conceptual 
C) Directive 
D) Behavioural 
E) Disruptive

Question 15

Managers sometimes make poor decisions because of cognitive biases in their decision-making process.Discuss four of the sources of bias that can adversely affect the ability of managers to make a good decision,and illustrate each of them with a realistic business decision-making situation.

Accepted Answer

The answer of Managers sometimes make poor decisions because of...

Question 16

Compare an analytic decision-making style with a behavioural decision-making style.

Accepted Answer

The answer of Compare an analytic decision-making style with a...

Question 17

Describe what is meant by the "clustering illusion" and provide an example to illustrate this bias.

Accepted Answer

The answer of Describe what is meant by the "clustering...

Question 18

All of the following are examples of nonprogrammed decisions,except:

Accepted Answer

A) Changing the light bulbs when they burn out 
B) Investing in new technology 
C) Developing a new product 
D) Launching a new promotional campaign 
E) Entering a new market or expanding internationally

Question 19

The process through which managers seek to improve employees' desire and ability to understand and manage the organization and its task environment is known as:

Accepted Answer

A) creativity 
B) brainstorming 
C) organizational learning 
D) production blocking 
E) intuition

Question 20

Managers who use a high degree of intuition when making decisions and have a high degree of tolerance for ambiguity have which type of decision-making style?

Accepted Answer

A) Analytic 
B) Conceptual 
C) Directive 
D) Behavioural 
E) Intuitive

Exam 3: Managing Decision Making

When generating alternatives,managers must never generate a set of feasible alternative courses of action to take in response to the opportunity or threat.

When a sales manager views the poor performance of his or her sales agents as resulting from their laziness rather than to the innovative product line of a competitor,this is a fundamental attribution error.

If a manager is not sure if a certain business practice is ethical,he or she should seek advice,if possible,from the company's ethics ombudsperson.

When Ford Canada limits its search for new suppliers to an existing set of alternatives known to the purchasing manager,they are using a satisficing strategy.

When Walmart tried to use the same model that worked for them in the USA in the rest of the world,they were acting on a representative bias.

Decisions that protect the environment,promote social responsibility,respect cultural differences,and provide an economic benefit are known as sustainability decisions.

Decision making involves analyzing options and making determinations about specific organizational goals and courses of action.

An ethical decision is a decision that reasonable or typical stakeholders would find acceptable because it aids shareholders,the organization,or society.

Managers who have a moderate commitment to social responsibility,and a willingness to do more than the law requires if asked is known as a(n) :

A cognitive bias resulting from the tendency to base decisions on strong prior beliefs even if evidence shows that those beliefs are wrong is known as:

A representative bias occurs when decision makers generalize from an isolated or individual case.

A manager decided to continue to purchase insurance from a company that charged high premiums,even though the manager knew that he or she could get the same coverage for less.This is an example of what type of cognitive bias?

A manager decided to continue to purchase insurance from a company that charged high premiums,even though the manager knew that he or she could get the same coverage for less.This is an example of illusion of control.

Managers who are rational in their way of thinking and have a low tolerance for ambiguity have which decision-making style?

Managers sometimes make poor decisions because of cognitive biases in their decision-making process.Discuss four of the sources of bias that can adversely affect the ability of managers to make a good decision,and illustrate each of them with a realistic business decision-making situation.

Compare an analytic decision-making style with a behavioural decision-making style.

Describe what is meant by the "clustering illusion" and provide an example to illustrate this bias.

All of the following are examples of nonprogrammed decisions,except:

The process through which managers seek to improve employees' desire and ability to understand and manage the organization and its task environment is known as:

Managers who use a high degree of intuition when making decisions and have a high degree of tolerance for ambiguity have which type of decision-making style?