Of the five constraints of decision making, which is most likely to be affected by risk aversion?
A) performance evaluations
B) reward system
C) formal regulation
D) time constraints
E) historical precedents

Question

Quizplus · Accepted Answer

Risk aversion is likely to affect the reward system constraint the most, as decision makers may prioritize avoiding potential losses over making potentially risky decisions that could lead to greater rewards. This can lead to a reluctance to take on innovative or high-risk projects that may have the potential for greater rewards but come with a higher level of uncertainty.

Of the Five Constraints of Decision Making, Which Is Most