3.2.2 Management Decision Making

Which of the following is a characteristic of scientific decision making?

• Based on intuition

• Involves a hunch or gut instinct

• Based on data and initial objectives

• Quick and does not require data analysis

What is one of the main advantages of making decisions based on data?

• It is always quick

• It reduces the risk of making expensive mistakes

• It does not require any data collection

• It is always more creative

What is a potential drawback of scientific decision making?

• It is always quick

• It is based on intuition

• It can be costly and time-consuming

• It does not involve data analysis

What is a key feature of intuitive decision making?

• Based on data

• Involves a structured approach

• Based on a hunch or gut instinct

• Requires extensive data analysis

Why might managers rely on intuition in decision making?

• Because it is always more accurate

• Because data might not be available

• Because it is less risky

• Because it is always more creative

What do managers need to consider when making decisions according to the document?

• Only the potential rewards

• Only the potential risks

• Risks, rewards, and uncertainty

• Only the level of uncertainty

What is a characteristic of decisions based on intuition?

• They are always based on logical reasons

• They can be made quickly

• They always involve data analysis

• They are always reliable

What is opportunity cost?

• The benefit that's given up in order to do something else

• The money spent on a business decision

• The time spent on a business decision

• The value of the resources used

Which of the following is NOT a factor that managers have to consider in decision making?

• Mission

• Objectives

• Ethics

• Personal preferences

What does the term "external environment" refer to in the context of management decision making?

• The internal policies of a business

• The outside factors that affect a business

• The mission of a business

• The objectives of a business