According to Strategic Reference Point Theory, managers have two basic strategic alternatives. They are:
A) risk-avoiding strategy and pioneering strategy
B) risk-avoiding strategy and risk-seeking strategy
C) risk-maintenance strategy and conflict-avoidance strategy
D) frontal attack strategy and guerrilla strategy
E) none of these

Question

Quizplus · Accepted Answer

According to Strategic Reference Point Theory, managers can adopt either a risk-avoiding strategy or a risk-seeking strategy. The risk-avoiding strategy focuses on achieving a certain level of performance and avoiding losses, while the risk-seeking strategy focuses on maximizing gains even if it means taking risks. Therefore, option B is the correct answer. The other options do not accurately reflect the strategic alternatives proposed by the theory.

According to Strategic Reference Point Theory, Managers Have Two Basic