Question 1

Which of the following is true about brainstorming?

Accepted Answer

A)   The number of ideas should be limited
B)   Ideas should be criticised and judged quickly
C)   Ideas should not be written down
D)   Implausible ideas should not be suggested
E)   None of these are correct. E

Question 2

Which of the following is true about intuition?

Accepted Answer

A)   It is largely arbitrary.
B)   It evolves over time.
C)   It's not based on rationality.
D)   It's similar to guessing.
E)   All of these are correct. B

Question 3

According to the rational decision-making approach, what is the second step of the decision-making process?

Accepted Answer

A)   Identify the problem
B)   Generate alternatives
C)   Evaluate alternatives
D)   State the situational goal
E)   Determine the decision type A

Question 4

Match each of the following situations with the concept it most clearly illustrates.
a.Hugh needs to buy a new laptop.He searches online until he finds the first laptop that fits his price and performance needs, and then he immediately buys it.
b.In a hand of poker, Kevin makes a bid and Thandeka calls.Later, Kevin makes a higher bid, and Thandeka calls again.At the end of the hand, when Thandeka goes all in, Kevin is almost certain she has the better cards.However, because he has already invested so much in the hand, Kevin feels obliged to call.
c.On paper, the candidate seems excellent, so Nina invites him for an interview, which goes swimmingly.Still, something about the guy seems 'off' to Nina, and though she can't put her finger on what it is, she hires someone else.
d.Unathi knows that the laptop she is about to buy from the electronics store is both more expensive and of lower quality than a laptop she could buy online.However, she desperately needs a laptop immediately, so she goes ahead with the purchase.
-suboptimising

Accepted Answer

The answer of Match each of the following situations with...

Question 5

The practical approach combines elements of both the rational and behavioural approaches.

Accepted Answer

A) True 
 B)False

Question 6

To help prevent groupthink, leaders should assign the role of '__________' to each group member to allow each member to voice objections and doubts freely.

Accepted Answer

A)   warning dismisser
B)   risky shifter
C)   unquestioned believer
D)   mindguard
E)   critical evaluator

Question 7

When __________ arises, a decision maker questions the decision made and searches for information to bolster it.

Accepted Answer

A)   post-decision uncertainty
B)   conflict reduction
C)   rationalisation bias
D)   post-decision dissonance
E)   positive reinforcement

Question 8

The Delphi technique is a method of systematically gathering the judgements of experts who work closely together at a common worksite.

Accepted Answer

A) True 
 B)False

Question 9

The information needed to make a programmed decision is __________ available, and the problem is __________ structured.

Accepted Answer

A)   readily, highly
B)   not readily, not highly
C)   not readily, highly
D)   readily, not highly
E)   somewhat readily, somewhat highly

Question 10

__________ is a person's ability to generate new ideas or to conceive of new perspectives on existing ideas.

Accepted Answer

The answer of __________ is a person's ability to generate...

Question 11

Contingency plans are a part of which phase of the decision-making process?

Accepted Answer

A)   Stating the goal
B)   Evaluating alternatives
C)   Choosing an alternative
D)   Implementation
E)   Alternative generation

Question 12

If a customer voices a complaint about food taste and temperature, certain restaurants always offer a complimentary meal.This represents

Accepted Answer

A)   a standard decision.
B)   a decision rule.
C)   a non-programmed decision.
D)   experience.
E)   cognitive dissonance.

Question 13

The fourth step of the creative process is

Accepted Answer

A)   verification.
B)   insight.
C)   incubation.
D)   preparation.
E)   application.

Question 14

Mandla purchases shares in a public company and refuses to sell them even after repeated drops in the original price he paid for the shares.Mandla has decided to purchase more of the shares in anticipation of making a profit, and has decided to keep the shares in the face of increasing losses.Mandla is suffering from

Accepted Answer

A)   organisational delusion.
B)   problem misidentification.
C)   escalation of commitment.
D)   groupthink.
E)   suboptimising.

Question 15

The creative process normally begins with a period of

Accepted Answer

A)   verification.
B)   insight.
C)   incubation.
D)   preparation.
E)   application.

Question 16

Decisions that recur infrequently and have no decision rules are __________ decisions.

Accepted Answer

A)   certain
B)   risk
C)   programmed
D)   non-programmed
E)   uncertain

Question 17

A crucial assumption of the behavioural approach to decision-making is that decision makers operate with bounded rationality rather than with the perfect rationality assumed by the rational approach.

Accepted Answer

A) True 
 B)False

Question 18

According to prospect theory, people are more motivated by

Accepted Answer

A)   the threat of losing something than by the prospect of gaining something.
B)   the prospect of gaining something than by the threat of losing something.
C)   internal values than by external rewards.
D)   external rewards than by internal values.
E)   None of these are correct.

Question 19

Which of the following does NOT tend to be one of the toughest managerial decisions?

Accepted Answer

A)   Opening a business
B)   Deciding which new product to launch
C)   Buying or selling a business
D)   Hiring and firing
E)   Creating work schedules

Question 20

Which of the following statements about programmed decisions is false?

Accepted Answer

A)   Information is readily available.
B)   Specific methods for handling them exist.
C)   They are highly structured.
D)   Judgement and creativity are the basis of solution.
E)   Goals are clear and well-known.

Exam 8: Decision Making and Problem Solving

Which of the following is true about brainstorming?

Which of the following is true about intuition?

According to the rational decision-making approach, what is the second step of the decision-making process?

The practical approach combines elements of both the rational and behavioural approaches.

To help prevent groupthink, leaders should assign the role of '__________' to each group member to allow each member to voice objections and doubts freely.

When __________ arises, a decision maker questions the decision made and searches for information to bolster it.

The Delphi technique is a method of systematically gathering the judgements of experts who work closely together at a common worksite.

The information needed to make a programmed decision is available, and the problem is structured.

__________ is a person's ability to generate new ideas or to conceive of new perspectives on existing ideas.

Contingency plans are a part of which phase of the decision-making process?

If a customer voices a complaint about food taste and temperature, certain restaurants always offer a complimentary meal.This represents

The fourth step of the creative process is

The creative process normally begins with a period of

Decisions that recur infrequently and have no decision rules are __________ decisions.

A crucial assumption of the behavioural approach to decision-making is that decision makers operate with bounded rationality rather than with the perfect rationality assumed by the rational approach.

According to prospect theory, people are more motivated by

Which of the following does NOT tend to be one of the toughest managerial decisions?

Which of the following statements about programmed decisions is false?