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Chapter 3: Decision Making

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

The process by which managers respond to opportunities and threats facing their

organization by analyzing options and taking actions is known as:

a)

Brainstorming

b)

Intuition

c)

Decision making

d)

Bounded rationality

e)

Heuristics

2.

Managers make decisions when they are involved in which managerial function?

a)

Planning

b)

Controlling

c)

Leading

d)

Organizing

e)

All of the above

3.

Mary schedules a meeting with Clarise, a subordinate, because Clarise's

performance has dropped below a certain level. What type of decision does this represent?

a)

Intuition

b)

Groupthink

c)

Programmed

d)

Nonprogrammed

e)

Satisficing

4.

When an organization's accounting department sends out a bill to a new customer,

what type of decision does this represent?

a)

Programmed

b)

Nonprogrammed

c)

Intuition

d)

Groupthink

e)

Bounded rationality

5.

Nonroutine decisions made in response to novel situations in business are known as:

a)

Intuitive decisions

b)

Creative decisions

c)

Programmed decisions

d)

Heuristic decisions

e)

Nonprogrammed decisions

6.

In the administrative model of decision making, when the number of possible

alternatives to a decision is so large that the manager cannot possibly evaluate all of them

before making a decision, this is called:

a)

Satisficing

b)

Bounded rationality

c)

Brainstorming

d)

Devil's advocacy

e)

Optimizing

7.

When managers know the possible outcomes of a decision and can assign

probabilities to each of these outcomes in terms of their likelihood of occurrence in the future, this is known as:

a)

Uncertainty

b)

Certainty

c)

Risk

d)

Bounded rationality

e)

Dialectical inquiry

8.

When managers cannot assign probabilities of future occurrence to possible

alternatives to a decision, this is known as:

a)

Certainty

b)

Risk

c)

Bounded rationality

d)

Uncertainty

e)

Dialectical inquiry

9.

When uncertainty exists, the probabilities of alternative outcomes __________ be determined and the future outcomes are _________.

a)

Can; known

b)

Cannot; known

c)

Can; unknown

d)

Cannot; unknown

e)

None of the above

10.

When a manager makes a decision based on a generalization from a very small sample of information, this is known as:

a)

Dialectical inquiry

b)

Systematic errors

c)

Devil's advocacy

d)

Representative bias

e)

The illusion of control

11.

1.      Managers make decisions whenever they are engaged in planning, organizing, leading, or controlling.

a)

True

b)

False

12.

A routine decision is called a nonprogrammed decision.

a)

True

b)

False

13.

Nonprogrammed decision-making is always required for routine decisions.

a)

True

b)

False

14.

A common reason for poor decisions is that managers fail to specify the criteria that are important for making that particular decision.

a)

True

b)

False

15.

Managers can be reactive in recognizing the need for a decision, but not proactive.

a)

True

b)

False

16.

When a manager generalizes inappropriately from a small sample to a new situation and makes a poor decision as a result, representativeness bias has occurred.

a)

True

b)

False

17.

When the members of a group try hard to agree, even when it is done without accurately assessing the information available to the group, we say that groupthink has occurred.

a)

True

b)

False

18.

The ability of a decision-maker to discover novel ideas that lead to feasible alternatives in decision-making is known as creativity.

a)

True

b)

False

19.

Group creativity can be increased by using brainstorming techniques.

a)

True

b)

False

20.

When the outcomes of decision alternatives are known and their probabilities can be determined, a situation of uncertainty exists.

a)

True

b)

False