When business managers ignore risks and fail to objectively evaluate the odds of success for their decisions, it is an example of which of the following psychological biases?
A) Illusion of control.
B) Framing effects.
C) Discounting the future.
D) Time pressure.
E) Social realities.

Question

Quizplus · Accepted Answer

The illusion of control is a belief that one can influence events even when one has no control over what will happen. In business, such overconfidence can lead to failure because decision makers ignore risks and fail to objectively evaluate the odds of success.

When Business Managers Ignore Risks and Fail to Objectively Evaluate