MGT103-Chapter 4

The process of choosing one alternative from among a set of alternatives is called _____.

• rational ignorance

• altruism

• bounded rationality

• decision making

• groupthink

Which of the following statements is true about the decision-making process?

• It exclusively applies to problem situations.

• It requires that the nature of a particular situation be defined.

• It seldom applies to situations that are positive

• It typically involves only one individual and seldom applies to groups.

• It results in the generation of only one alternative.

Ryan, the production manager at the Tan Shoes Company, chose the cheapest leather-cutting machine from a set of five machines from different manufacturers. Ryan was engaged in _____.

• decision making

• optimizing

• rationalizing

• brainstorming

• social loafing

Which of the following statements is true about the process of decision making?

• It ends when the decision situation has been defined.

• It includes putting the chosen alternative to practice.

• The first step in the process is to identify alternatives to a problem.

• The process is said to be complete when a set of alternatives to a problem has been created.

• In a business scenario, the decision-making process is always aimed at finding a way to increase profits.

A(n) _____ decision is a decision that is relatively structured or recurs with some frequency (or both).

• custom-made

• novel

• unstructured

• intuitive

• programmed

Decisions regarding standard organizational transactions are most likely to be _____ decisions.

• unstructured

• infrequent

• programmed

• intuitive

• irrational

When the inventory manager of Cuisine Royale, a restaurant, decides to order a batch of brown bread because the stock is almost empty, she's making a(n) _____ decision.

• programmed

• unstructured

• intuitive

• irrational

• strategic

Which of the following illustrates a programmed decision?

• A cafe owner buys a hundred cartons of coffee every month

• A fast food chain decides to enter into a new franchise agreement.

• A content development company decides to sue a competitor for copyright infringement.

• A health drink manufacturing company decides to launch a new product in the market.

• An IT company decides to lay off a hundred employees.

Which of the following statements is true in the context of decision making under a state of risk?

• The decision maker clearly knows the alternatives.

• The decision maker uses probability estimates to assess alternatives.

• The decision maker is least likely to choose a bad alternative.

• The decision maker has an accurate understanding of payoffs of all the alternatives.

• The decision maker seldom considers his or her past experience while making the decision.

When Irene wants to buy new laptops for her marketing executives and she has to pick them up from a single brand that is preinstalled with the marketing software that her company needs, she's making a decision under a condition of _____.

• imperfect information

• ambiguity

• risk

• certainty

• unclear alternatives