Unit 2

The benefit that is lost in making a choice between two competing uses of business resources is the:

• sunk cost

• fixed cost

• social cost

• opportunity cost

When an investment analyst uses an already completed decision tree in order to predict the expected values and net gains from competing business projects, she must work through the calculations using figures from:

• top to bottom

• bottom to top

• left to right

• right to left

Which of the following is not a resource constraint which can influence business decision-making? A shortage of:

• financial capital

• factory space

• trained staff

• measuring objectives

Employees, customers and suppliers are business:

• resources

• rewards

• shareholders

• stakeholders

A business uses a decision tree to aid decision making. The decision tree will show:

• lead time

• expected value

• total costs

• confidence levels

The Tannenbaum Schmidt Continuum shows the relationship between the level of freedom that a manager chooses to give a group of staff and the level of authority used by the manager. How many levels of delegated freedom does this model identify?

• 3

• 5

• 7

• 9

Stakeholder mapping is a technique that plots business stakeholders in terms of:

• accurate postal codes to identify specific locations and length of the supply chain

• overall ethical awareness relative to current cash flow

• their relative influence on share price movements

• how much power they have and how interested they are in business activities

When constructing a decision tree a business analyst must draw it from:

• top to bottom

• bottom to top

• left to right

• right to left

Which one of the following leadership/management styles will not feature on the Blake Moulton Grid?

• Country club

• Impoverished

• Urban guerrilla

• Team leader

On a decision tree a square indicates:

• a possible choice

• a possible outcome

• where a decision has to be made

• a chance