Question 1

Casey, the accountant for a small firm, pays the real estate taxes seven days before they are due. This represents which type of decision?

Accepted Answer

A)  Satisficing 
B)  Programmed 
C)  Intuition 
D)  Nonprogrammed

Question 2

Discuss the assumptions that underlie the classical model of decision-making.

Accepted Answer

The answer of Discuss the assumptions that underlie the classical...

Question 3

The purchasing manager for Telsa Motor Co. decides to call three suppliers of automobile windshields for a bid on an order for 1,000 windshields for a new Ford car, instead of calling a hundred possible windshield suppliers for such a bid. What type of decision does this represent?

Accepted Answer

A)  Nonprogrammed 
B)  Illusion of control 
C)  Satisficing 
D)  Programmed

Question 4

Adrian, a manager of the research and development team of an organization, challenges his subordinates to "think outside the box" to improve the way the unit does its work. Adrian is focusing on ________.

Accepted Answer

A)  personal mastery 
B)  mental models 
C)  team learning 
D)  shared vision

Question 5

When an issue is controversial and when different managers might be expected to champion different courses of action, which of the following is the preferred technique for encouraging creativity?

Accepted Answer

A)  Production blocking technique 
B)  Brainstorming technique 
C)  Team learning technique 
D)  Nominal group technique

Question 6

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 ________.

Accepted Answer

A)  uncertainty 
B)  certainty 
C)  risk 
D)  bounded rationality

Question 7

The classical model of decision making assumes that _________.

Accepted Answer

A)  the number of alternatives a manager must identify is so great that it is difficult for the manager to even come close to evaluating it all before making a decision 
B)  managers have little information to use in making a decision 
C)  managers have access to all the information they need to make the optimum decision 
D)  managers have neither the time nor the money to search for all possible alternative solutions and evaluate all the potential consequences of those alternatives

Question 8

Dale, a manager, is assessing possible alternatives for the solution of a quality problem in his department. As Dale does so, he attempts to determine if a possible alternative will threaten other company projects. Which of the following criteria of decision-making is being implemented by Dale?

Accepted Answer

A)  Economic feasibility 
B)  Practicality 
C)  Legality 
D)  Ethicalness

Question 9

Based on the work of March and Simon's administrative model of decision making, the first step in the managerial decision-making process is to _________.

Accepted Answer

A)  choose among alternatives 
B)  assess alternatives 
C)  implement the chosen alternative 
D)  recognize the need for a decision

Question 10

When entrepreneurs believe that they are responsible for what happens to them and that their own actions determine important outcomes such as the success or failure of a new business, they are likely to have ________.

Accepted Answer

A)  an external locus of control 
B)  less openness to experience 
C)  moderate need for achievement 
D)  an internal locus of control

Question 11

The nominal group technique is especially useful when an issue is not controversial and when different managers are expected to champion a similar course of action.

Accepted Answer

A) True 
 B)False

Question 12

An organization that has been focusing on a target market located in the eastern part of the United States is attempting to decide whether to expand its sales to the West Coast of the United States. Which of the following types of decisions is being taken by the organization?

Accepted Answer

A)  Intuition 
B)  Nonprogrammed 
C)  Groupthink 
D)  Satisficing

Question 13

Which of the following is a way to bring distant managers together to brainstorm and is a written approach to creative problem solving?

Accepted Answer

A)  Brainstorming 
B)  Dialectical inquiry 
C)  Delphi technique 
D)  Nominal group technique

Question 14

While assessing the practicality of alternatives, managers must decide whether they have the capabilities and resources required to implement the alternative, and they must be sure that the alternative will not threaten the attainment of other organizational goals.

Accepted Answer

A) True 
 B)False

Question 15

Martin, a plant foreman, asks the plant superintendent to allow him to hire an additional worker whenever overtime hours for the previous month increase by more than 25 percent. This is an example of which type of decision?

Accepted Answer

A)  Intuition 
B)  Groupthink 
C)  Satisficing 
D)  Programmed

Question 16

An individual who looks for opportunities and is aware of mobilizing the resources required for producing new and improved goods and services is called a(n) ________.

Accepted Answer

A)  decision maker 
B)  entrepreneur 
C)  advocate 
D)  steward

Question 17

Managers can increase their ability to make nonprogrammed decisions that will allow them to adapt to, modify, and even drastically alter their task environments so that they can continually increase organizational performance through organizational ________.

Accepted Answer

A)  learning 
B)  satisficing 
C)  group thinking 
D)  diversity

Question 18

In assessing alternatives, explain the four criteria to evaluate the pros and cons of alternative courses of action.

Accepted Answer

The answer of In assessing alternatives, explain the four criteria...

Question 19

Why is group decision making considered beneficial?

Accepted Answer

A)  It takes less time than individual decision-making. 
B)  It is easy to get two or more managers to agree to the same solution. 
C)  It allows more information processing and correction of errors. 
D)  It cannot be undermined by biases.

Question 20

What do managers do to regulate routine activities?

Accepted Answer

A)  They create a mission statement. 
B)  They establish rules and guidelines. 
C)  They create cross-functional teams. 
D)  They facilitate a strong organizational culture.

Exam 5: Decision Making, Learning, Creativity, and Entrepreneurship