Question 1

Which of the following is true about the overconfidence bias?

Accepted Answer

The overconfidence bias occurs when individuals have more faith in their abilities to predict an event than logic suggests is actually possible. This can lead to overestimating the accuracy of their judgments and decisions.

Question 2

Which of the following is true about the representativeness bias?

Accepted Answer

The answer of Which of the following is true about...

Question 3

Generation X differs from the baby boomers in that Generation X members:

Accepted Answer

Generation X values work-life balance and the ability to work on their own terms. They prioritize flexibility in their jobs, including the option to work remotely, have flexible schedules, and pursue a variety of projects.

Question 4

More than any other generation, _____ prize(s) job and life satisfaction highly, so making the workplace an enjoyable environment is key to managing them.

Accepted Answer

Generation Y, also known as millennials, is the generation that values job and life satisfaction highly. They seek purpose, fulfillment, and work-life balance in their careers. Therefore, creating an enjoyable workplace is crucial when managing this generation.

Question 5

Which of the following decision biases may occur when individuals draw broad conclusions from small sets of observations instead of more reliable sources of information derived from large, randomly selected sets of observations?

Accepted Answer

This bias is known as the misunderstanding about sampling, where individuals may draw conclusions based on a small set of observations without realizing that it may not be representative of the larger population. This can lead to incorrect assumptions and decisions being made based on incomplete information.

Question 6

Which of the following is true about satisficing?

Accepted Answer

Satisficing refers to settling for a decision that is acceptable or satisfactory rather than seeking the best possible decision. Option A accurately defines satisficing.

Question 7

Which of the following is true about Gen X members?

Accepted Answer

Gen X members are known for valuing flexibility in their jobs, such as the ability to work remotely or to have flexible hours. They also differ from previous generations in that they place less importance on traditional face time in the workplace.

Question 8

Which of the following is the first step of the process of rational decision-making?

Accepted Answer

The first step of the process of rational decision-making is identifying the problem or decision to be made. Without clearly identifying the problem, it becomes difficult to establish decision criteria, generate alternatives, and select the best alternative.

Question 9

Which of the following is true about the fundamental attribution error?

Accepted Answer

The fundamental attribution error refers to the tendency to attribute others' behavior to internal, dispositional factors (personal characteristics) rather than external, situational factors. This is typically seen when good outcomes are attributed to personal characteristics but undesirable outcomes are attributed to external circumstances. Option A is referring to the "anchoring effect," option B is referring to the "availability heuristic," option D is referring to "hindsight bias," and option E is referring to "overconfidence bias," which are all different cognitive biases.

Question 10

Ruth is the store manager at Pink & Blue, a store that sells children's clothing and baby care products.Whenever the sales are high at the store, Ruth feels that it is because she manages the store efficiently.When the sale drops and there are instances of customer dissatisfaction, she decides that it is caused by the inefficiency of her sales staff.In this example, Ruth exhibits which of the following decision biases?

Accepted Answer

Ruth is exhibiting fundamental attribution error, as she is making dispositional attributions to explain the behavior of others (her sales staff) rather than considering situational factors that may be contributing to the drop in sales and customer dissatisfaction.

Question 11

Discuss the meanings of the terms shark repellent and white knight in the context of a hostile takeover.

Accepted Answer

The answer of Discuss the meanings of the terms shark...

Question 12

Which of the following is true about the availability bias?

Accepted Answer

The availability bias occurs when individuals base their judgments on examples and information that are readily available to them, even if this information is not necessarily representative or accurate. This can lead to incorrect assessments of likelihood or probability.

Question 13

The generation known as _____ was born between 1946-1964, corresponding with an increase of population following the end of World War II.

Accepted Answer

The generation born between 1946-1964 is commonly known as the baby boomers, as there was a significant increase in births following the end of World War II. The term "baby boomers" derives from the fact that there was a surge in births during this time period, leading to a "boom" in the population.

Question 14

Sharon works as a customer service agent at Ace Technologies, a firm that develops inventory management software.Sharon needs to inform her manager about a customer issue that has been escalated.Sharon, to avoid presenting negative information to her manager, frames information in a more positive light than reality.In this example, _____ bias occurs.

Accepted Answer

Sharon is framing information in a more positive light than reality, which is a form of overconfidence bias.

Question 15

Describe the various functions of a board of directors.

Accepted Answer

The answer of Describe the various functions of a board...

Question 16

Which of the following decision biases is displayed by individuals who continue on a failing course of action even after it becomes clear that this may be a poor path to follow?

Accepted Answer

The bias displayed in this scenario is escalation of commitment, which refers to the tendency to invest additional resources into a failing course of action even when it becomes clear that the situation is unlikely to improve.

Question 17

The generation born between 1925 and 1946 that fought in World War II and through The Great Depression are referred to as the:

Accepted Answer

The generation born between 1925 and 1946 is commonly known as the traditionalists or the silent generation. They are characterized by their emphasis on hard work, duty, and conformity, and are often associated with the values and experiences of the Great Depression and World War II.

Question 18

Which of the following is a defining characteristic of the members of the baby boomers generation?

Accepted Answer

Baby boomers are known for valuing traditional workplace interactions, such as face time and in-person communication. They also value independence and dislike being micro-managed. However, they were born between 1946 and 1964, so option C is incorrect. Option B is incorrect as baby boomers make up a larger portion of the workforce than just 5%. Option E may be true for some baby boomers, but it is not a defining characteristic of the entire generation.

Question 19

Andrew, a stock broker at a leading investment firm, often recommends his clients to invest in stocks based on a few observation.Andrew relies on his instincts to make such decisions, rather than basing his decisions on reliable sources of information and careful number crunching.In this example, Andrew makes which of the following decision biases?

Accepted Answer

The answer of Andrew, a stock broker at a leading...

Question 20

Which of the following groups is also known as Millenial?

Accepted Answer

Generation Y, which includes people born between 1981 and 1996, is also known as the Millennial generation.

Quiz 10: Leading an Ethical Organization: Corporate Governance, Corporate Ethics, and Social Responsibility