Assume you are an overconfident manager. You are most apt to do which one of the following more so than you would if you were not overconfident?
A) Research a project more thoroughly before committing funds to commence it
B) Accept risky projects that turn out to be less profitable than you expected
C) Wait until new technology proves its worth before incorporating it into your firm's operations
D) Avoid mergers and acquisitions
E) Invest excess company cash more conservatively than your peers at other firms

Question

Quizplus · Accepted Answer

Overconfident managers tend to underestimate risks and overestimate their own abilities, leading them to accept riskier projects than they should. This behavior can lead to poor decision-making and lower profitability.

Assume You Are an Overconfident Manager