Topic: Decision-Making Styles
56) When a decision maker chooses an alternative under perfect rationality, she ________ her decision, whereas under bounded rationality she chooses a ________ decision.
A) minimizes; satisficing B) satisfices; maximizing C) maximizes; satisficing D) maximizes; minimizing Answer: C
Diff: 3 Page Ref: 125 Topic: Decision-Making Styles
57) An increased commitment to a previous decision despite evidence that it may have been wrong is referred to as ________. A) economies of commitment B) escalation of commitment C) dimensional commitment D) expansion of commitment Answer: B
Diff: 2 Page Ref: 126 Topic: Decision-Making Styles
58) Intuitive decision making is ________. A) not utilized in organizations
B) a conscious process based on accumulated judgment
C) making decisions based on experience, feelings, and accumulated judgment D) important in supporting escalation of commitment Answer: C
Diff: 2 Page Ref: 126 Topic: Decision-Making Styles
59) In studying intuitive decision making, researchers have found that ________. A) managers do not make decisions based on feelings or emotions
B) managers use data from their subconscious mind to help make their decisions C) rational thinking always works better than intuitive
D) accumulated experience does not support intuitive decisions Answer: B
Diff: 2 Page Ref: 126 Topic: Decision-Making Styles
60) All of the following are aspects of intuition except ________. 11
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A) experienced-based decisions B) affect-initiated decisions C) cognitive-based decisions D) programmed decisions Answer: D
Diff: 1 Page Ref: 127 Topic: Decision-Making Styles
61) ________ are straightforward, familiar, and easily defined. A) Unstructured problems B) Structured problems C) Unique problems
D) Nonprogrammed problems Answer: B
Diff: 2 Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
62) Structured problems align well with which type of decision making? A) programmed B) satisficing C) intuition D) gut feeling Answer: A
Diff: 2 Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
63) ________ decision making is relatively simple and tends to rely heavily on previous solutions. A) Nonprogrammed B) Linear C) Satisficing D) Programmed Answer: D
Diff: 2 Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
64) A procedure ________.
A) is an explicit statement detailing exactly how to deal with a decision
B) is a series of interrelated sequential steps to respond to a structured problem C) is a set of guidelines that channel a manager's thinking in dealing with a problem
D) allows a manager to use broad decision-making authority
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Answer: B
Diff: 2 Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
65) A ________ is an explicit statement that tells a manager what he or she can or cannot do. A) procedure B) policy C) rule D) solution Answer: C
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
66) A policy ________.
A) typically contains an ambiguous term
B) is used frequently when a manager faces a structured problem C) allows little discretion on the part of the manager
D) offers strict rules as to how a problem should be solved Answer: A
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
67) What is a difference between a policy and a rule? A) A policy establishes parameters. B) A rule establishes parameters. C) A policy is more explicit. D) A rule is more ambiguous. Answer: A
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
68) A ________ typically contains an ambiguous term that leaves interpretation up to the decision maker. A) system B) rule C) solution D) policy Answer: D
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
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69) A business school's statement that it \local organizations\A) rule B) policy C) procedure D) commitment Answer: B
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
70) Unstructured problems ________. A) are easily solved
B) present familiar circumstances
C) force managers to deal with incomplete or ambiguous information D) are routine Answer: C
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
71) Nonprogrammed decisions are best described as ________. A) recurring, but difficult to make
B) very similar to problems in other areas of the organization
C) requiring more aggressive action on the decision maker's thought processes D) unique and nonrecurring Answer: D
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
72) When problems are ________, managers must rely on ________ in order to develop unique solutions.
A) structured; nonprogrammed decision making B) structured; pure intuition
C) unstructured; nonprogrammed decision making D) unstructured; programmed decision making Answer: C
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
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73) Lower-level managers typically confront what type of decision making? A) unique B) nonroutine C) programmed D) nonprogrammed Answer: C
Diff: 2 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
74) Which of the following is likely to make the most programmed decisions? A) the CEO of PepsiCo
B) the vice president of General Motors Cadillac Division C) the head of the Minute Maid Division at Coca-Cola D) the manager of the local McDonald's Answer: D
Diff: 1 Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
75) ________ is a situation in which a manager can make accurate decisions because the outcome of every alternative is known. A) Certainty B) Risk
C) Uncertainty D) Maximax E) Maximin Answer: A
Diff: 1 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
76) If an individual knows the price of three similar cars at different dealerships, he or she is operating under what type of decision-making condition? A) risk
B) uncertainty C) certainty D) factual Answer: C
Diff: 1 Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
77) A retail clothing store manager who estimates how much to order for the
current spring season based on last spring's outcomes is operating under what kind of decision-making condition?
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