Question 1

Every salaried employee at Whirlpool is enrolled in an online course on business innovation.

Accepted Answer

A) True 
 B)False

Question 2

The condition of certainty means that the __________ and __________ are known.

Accepted Answer

A)  problem; decision 
B)  problem; alternative solutions 
C)  opportunities; threats 
D)  strengths; weaknesses

Question 3

Tim Bayyouk, an employee of Halliburton, is making decisions under a condition of being fully informed, as well as having alternative solutions the results of which are totally predictable. He is operating under the condition of certainty.

Accepted Answer

A) True 
 B)False

Question 4

In phase 1 in the rational decision-making model, the skill of __________ involves identifying and monitoring numerous external and internal environmental factors and deciding which ones are contributing to the problem.

Accepted Answer

A)  interpreting 
B)  communication 
C)  noticing 
D)  teamwork

Question 5

The types of __________ that managers and other employees deal with range from the relatively common and well defined to the unusual and ambiguous.

Accepted Answer

A)  risks 
B)  uncertainties 
C)  decisions 
D)  problems

Question 6

Lauren De La Cruz is determining the type, amount, and reliability of information that influences the level of risk. She should look at whether she can use objective or subjective probability in estimating the outcome.

Accepted Answer

A) True 
 B)False

Question 7

Carrie Kent wants to get a job as an international currency trader. Kent begins to think creatively about the ways in which she could obtain this job. She is at the __________ step of the rational decision-making model.

Accepted Answer

A)  setting goals 
B)  comparing alternative solutions 
C)  search for alternative solutions 
D)  choosing alternatives

Question 8

Life insurance underwriters cannot determine which of their clients will die this year. However, their business success depends upon their ability to predict how many of those clients will die, based on population death rates in categories of age, gender, etc. Life insurance companies are using __________ to make their decisions about whom to insure and the premiums to charge.

Accepted Answer

A)  uncertainty 
B)  alternative risk 
C)  subjective probabilities 
D)  objective probabilities

Question 9

Stakeholders within an organization often view information as a major source of power.

Accepted Answer

A) True 
 B)False

Question 10

A manager of a restaurant located in a shopping center that is losing popularity says, "Let's spend more on advertising because sales jumped in the last half of 2006 when we did that." This manager __________.

Accepted Answer

A)  should receive a raise for seeing the connection between advertising and sales 
B)  is using known facts to make an adaptive decision 
C)  should use a routine decision 
D)  may be making a routine decision when a problem calls for an adaptive or innovative decision

Question 11

Which of the following is not an individual tendency in the bounded rationality model of decision making?

Accepted Answer

A)  engage in an extended search for alternative solutions 
B)  select less than the best goal 
C)  select less than the best alternative solution 
D)  have inadequate information and control over environmental forces

Question 12

John Wade's example of working with his multiple bosses demonstrates the need for an effective communication competency.

Accepted Answer

A) True 
 B)False

Question 13

Goals may be stated in either __________ or __________ terms.

Accepted Answer

A)  attainable; unattainable 
B)  qualitative; quantitative 
C)  objective; concrete 
D)  specific; concrete

Question 14

The conditions under which decisions are made can be classified as __________.

Accepted Answer

A)  certainty and ambiguity 
B)  uncertainty and creativity 
C)  certainty and routinization 
D)  certainty, risk, and uncertainty

Question 15

Decision making under the condition of certainty is the exception for most managers.

Accepted Answer

A) True 
 B)False

Question 16

The Smithsonian Institute in Washington, D.C., has a goal to serve as an educational resource for the people of the United States and the rest of the world. This is an example of a(n) _________ goal.

Accepted Answer

A)  operational 
B)  general 
C)  shareholder 
D)  personnel

Question 17

Courtney Arning often blames problems on other individuals to preserve a positive image for herself. Thus, Arning tends to use __________.

Accepted Answer

A)  argumentation 
B)  person-role augmentation 
C)  scapegoating 
D)  power shifting

Question 18

Which of the following is (are) included in Whirlpool's five-year effort to reinvent the company's management processes?

Accepted Answer

A)  making innovation a central topic in leadership development programs 
B)  enrolling every salaried employee in an online course on business innovation 
C)  establishing innovation as a large part of top management's long-term bonus plan 
D)  all of the above are part of the effort

Question 19

Shannon McGriff decided to become a flight attendant when she graduates from college in two years. She liked the number of guaranteed hours and benefits. Recently, the company has announced that benefits will no longer be offered to flight attendants, and that they will have to work standby hours. McGriff decides to become a teacher. McGriff has made her decision in part because __________.

Accepted Answer

A)  the conditions under which she made her initial decision changed 
B)  she is certain that the employment conditions will not improve 
C)  she did not have information about the job when she made her initial decision 
D)  she did not know how to make decisions

Question 20

Evan Richardson has a problem. He wants to travel to Paris and pay the lowest possible price. His travel agent uses the computerized airline reservation system to find a flight for $1,000 and a flight for $700. Richardson's choice of which flight to take is a(n) __________ decision.

Accepted Answer

A)  financial slack 
B)  routine 
C)  imitable 
D)  adaptive

Exam 8: Fundamentals of Decision Making

Every salaried employee at Whirlpool is enrolled in an online course on business innovation.

The condition of certainty means that the and are known.

Tim Bayyouk, an employee of Halliburton, is making decisions under a condition of being fully informed, as well as having alternative solutions the results of which are totally predictable. He is operating under the condition of certainty.

In phase 1 in the rational decision-making model, the skill of __________ involves identifying and monitoring numerous external and internal environmental factors and deciding which ones are contributing to the problem.

The types of __________ that managers and other employees deal with range from the relatively common and well defined to the unusual and ambiguous.

Lauren De La Cruz is determining the type, amount, and reliability of information that influences the level of risk. She should look at whether she can use objective or subjective probability in estimating the outcome.

Carrie Kent wants to get a job as an international currency trader. Kent begins to think creatively about the ways in which she could obtain this job. She is at the __________ step of the rational decision-making model.

Stakeholders within an organization often view information as a major source of power.

A manager of a restaurant located in a shopping center that is losing popularity says, "Let's spend more on advertising because sales jumped in the last half of 2006 when we did that." This manager __________.

Which of the following is not an individual tendency in the bounded rationality model of decision making?

John Wade's example of working with his multiple bosses demonstrates the need for an effective communication competency.

Goals may be stated in either or terms.

The conditions under which decisions are made can be classified as __________.

Decision making under the condition of certainty is the exception for most managers.

The Smithsonian Institute in Washington, D.C., has a goal to serve as an educational resource for the people of the United States and the rest of the world. This is an example of a(n) _________ goal.

Courtney Arning often blames problems on other individuals to preserve a positive image for herself. Thus, Arning tends to use __________.

Which of the following is (are) included in Whirlpool's five-year effort to reinvent the company's management processes?

Evan Richardson has a problem. He wants to travel to Paris and pay the lowest possible price. His travel agent uses the computerized airline reservation system to find a flight for $1,000 and a flight for $700. Richardson's choice of which flight to take is a(n) __________ decision.