Question 1

An organization's finance department decides to go to the company's usual bank and take out a loan whenever the company's revenues for the month are projected to be less than its expenses. What type of decision does this represent?
A)optimum
B)satisficing
C)programmed
D)risk

Accepted Answer

This decision is a programmed decision because it follows a predetermined set of rules or procedures (taking a loan when revenues are less than expenses) that the organization has established for such situations.

Question 2

When a member of a group challenges the decision that is being made by the group in an attempt to make the group carefully consider the pros and cons of a particular alternative, this member is playing the role of the devil's advocate.

Accepted Answer

The role of a devil's advocate involves questioning and challenging ideas to ensure thorough consideration and prevent groupthink.

Question 3

You are a manager who wants to give some of your programmed decisions to your assistant to leave you more time to devote to nonprogrammed decisions. Considering this, which of the following actions would you delegate to your assistant?
A)how much to invest in a new product
B)whether to expand into a new market
C)when to time a new advertising campaign
D)when to bill customers

Accepted Answer

Billing customers is a routine, repetitive task that follows a set procedure, making it a programmed decision suitable for delegation.

Question 4

The first step in decision making that a manager needs to take is generate a set of feasible alternative courses of action in response to the opportunity or threat.

Accepted Answer

The first step in decision making is to identify and define the problem or opportunity that requires a decision.

Question 5

Nikola, the accountant for a small firm, always pays the real estate taxes seven days before they are due. This represents which type of decision?
A)satisficing
B)programmed
C)intuition
D)nonprogrammed

Accepted Answer

This is a programmed decision because it follows a routine or established procedure that Nikola consistently applies.

Question 6

The nominal group technique is especially useful when an issue is not controversial and when different managers are expected to champion a similar course of action.

Accepted Answer

The nominal group technique is particularly useful for controversial issues or when there are differing opinions, as it helps ensure all voices are heard and considered.

Question 7

Martin, a plant foreman, hires an additional worker whenever overtime hours for the previous month increase by more than 25 percent. This is an example of which type of decision?
A)intuition
B)groupthink
C)satisficing
D)programmed

Accepted Answer

This is a programmed decision because it follows a specific rule or guideline: hiring an additional worker when overtime hours increase by more than 25 percent.

Question 8

Individuals who believe that they are responsible for what happens to them and that their own actions determine important outcomes are said to have an external locus of control.

Accepted Answer

Individuals with an external locus of control believe that external factors, rather than their own actions, determine important outcomes. Those who believe their actions determine outcomes have an internal locus of control.

Question 9

When a manager chooses an acceptable alternative instead of the optimum alternative, we say that a satisficing decision has occurred.

Accepted Answer

Satisficing involves selecting an option that meets the minimum criteria for acceptability rather than the best possible solution.

Question 10

What do managers do to regulate routine activities?
A)They create a mission statement.
B)They establish rules and guidelines.
C)They create cross-functional teams.
D)They facilitate a strong organizational culture.

Accepted Answer

Managers establish rules and guidelines to regulate routine activities.

Question 11

Rationalization is a critical analysis of a preferred alternative to ascertain its strengths and weaknesses before it is implemented.

Accepted Answer

Rationalization typically involves justifying a decision or behavior, often after it has been made, rather than critically analyzing it beforehand.

Question 12

The manager of a charity asks the board of directors for permission to hire temporary help when the regular secretary goes on vacation. This is an example of which type of decision?
A)programmed
B)groupthink
C)nonprogrammed
D)intuition

Accepted Answer

The answer of The manager of a charity asks the...

Question 13

The ability of a decision maker to discover novel ideas that lead to feasible alternatives in decision making is known as creativity.

Accepted Answer

This statement accurately defines creativity.

Question 14

The classical decision-making model assumes that managers have all of the information they need in order to make the optimum decision.

Accepted Answer

The classical decision-making model is based on the assumption of complete information, allowing managers to make fully informed, rational decisions.

Question 15

In the decision-making process, to compare what actually happened to what was expected to happen as a result of the decision is a procedure of choosing among alternatives.

Accepted Answer

This process is known as evaluation or assessment, not choosing among alternatives.

Question 16

While assessing the practicality of alternatives, managers must decide whether they have the capabilities and resources required to implement the alternative, and they must be sure that the alternative will not threaten the attainment of other organizational goals.

Accepted Answer

Managers need to ensure that any chosen alternative is feasible with available resources and aligns with the organization's overall objectives to avoid conflicts with other goals.

Question 17

Decisions that have been made many times in the past and for which managers have rules and guidelines about how to make similar decisions in the future are known as ________ decisions.
A)nonprogrammed
B)judgment
C)programmed
D)optimum

Accepted Answer

Programmed decisions are those that are repetitive and routine, where managers have established rules and guidelines to handle them based on past experiences.

Question 18

When an organization's accounting department decides to send out a bill to a new customer, this represents a(n)________ decision.
A)programmed
B)nonprogrammed
C)intuitive
D)groupthink

Accepted Answer

A programmed decision is a decision that is made using a set of predetermined rules or procedures. In this case, the accounting department has a set of rules or procedures for sending out bills to new customers.

Question 19

Regina, a manager, orders raw materials when the raw materials inventory reaches a certain point. This is an example of which type of decision?
A)intuition
B)satisficing
C)nonprogrammed
D)programmed

Accepted Answer

This is an example of a programmed decision because it follows a predetermined set of rules or procedures, such as ordering raw materials when inventory reaches a specific level.

Question 20

Nonroutine decisions made in response to novel situations in business are known as ________ decisions.
A)devil's advocacy
B)ambiguous
C)groupthink
D)nonprogrammed

Accepted Answer

Nonroutine decisions made in response to novel situations are known as nonprogrammed decisions, as they require unique solutions and are not covered by existing procedures or rules.

Quiz 5: Decision Making, Learning, Creativity, and Entrepreneurship

An organization's finance department decides to go to the company's usual bank and take out a loan whenever the company's revenues for the month are projected to be less than its expenses. What type of decision does this represent?

When a member of a group challenges the decision that is being made by the group in an attempt to make the group carefully consider the pros and cons of a particular alternative, this member is playing the role of the devil's advocate.

You are a manager who wants to give some of your programmed decisions to your assistant to leave you more time to devote to nonprogrammed decisions. Considering this, which of the following actions would you delegate to your assistant?

The first step in decision making that a manager needs to take is generate a set of feasible alternative courses of action in response to the opportunity or threat.

Nikola, the accountant for a small firm, always pays the real estate taxes seven days before they are due. This represents which type of decision?

The nominal group technique is especially useful when an issue is not controversial and when different managers are expected to champion a similar course of action.

Martin, a plant foreman, hires an additional worker whenever overtime hours for the previous month increase by more than 25 percent. This is an example of which type of decision?

Individuals who believe that they are responsible for what happens to them and that their own actions determine important outcomes are said to have an external locus of control.

When a manager chooses an acceptable alternative instead of the optimum alternative, we say that a satisficing decision has occurred.

What do managers do to regulate routine activities?

Rationalization is a critical analysis of a preferred alternative to ascertain its strengths and weaknesses before it is implemented.

The manager of a charity asks the board of directors for permission to hire temporary help when the regular secretary goes on vacation. This is an example of which type of decision?

The ability of a decision maker to discover novel ideas that lead to feasible alternatives in decision making is known as creativity.

The classical decision-making model assumes that managers have all of the information they need in order to make the optimum decision.

In the decision-making process, to compare what actually happened to what was expected to happen as a result of the decision is a procedure of choosing among alternatives.

While assessing the practicality of alternatives, managers must decide whether they have the capabilities and resources required to implement the alternative, and they must be sure that the alternative will not threaten the attainment of other organizational goals.

Decisions that have been made many times in the past and for which managers have rules and guidelines about how to make similar decisions in the future are known as ________ decisions.

When an organization's accounting department decides to send out a bill to a new customer, this represents a(n) ________ decision.

Regina, a manager, orders raw materials when the raw materials inventory reaches a certain point. This is an example of which type of decision?

Nonroutine decisions made in response to novel situations in business are known as ________ decisions.