SCENARIO 12-7 Microchip Technology Is at the Heart of Everything

Multiple Choice

SCENARIO 12-7 Microchip technology is at the heart of everything electronic.The stakes for manufacturers are high and market fluctuation makes for an uncertain future.Jim Forrest is CEO of BigChip Inc.,a medium-sized company that manufactures specialty microchips used in a variety of computers to facilitate efficient graphics processing.Jim recognizes the need to diversify his manufacturing operations and is considering starting up a new division,which would design,develop and produce security chips.These would be used in situations ranging from data transmission to securing financial transactions.Other companies are also considering involvement since the security market is potentially a large one.Jim knows that the rapid advancements in the field of computer hardware and software necessitates an innovative approach to development of any new technology.Jim realizes that responding to market conditions and world economic influence will have to be carefully dealt with.
-Refer to Scenario 12-7.Jim has been identified as a risk-taker,which in the past has proven to be successful for him and BigChip Inc.Risk-takers generally make decisions intuitively,based on experience and other characteristics which are relevant to their views and perceptions.In which situation will intuitive decision making likely to be used?

A) when there is much precedent and past history to draw on
B) when analytical data and information appear to be of little or no use
C) when variables are logically and scientifically predictable
D) when facts clearly point the way to a logical conclusion
E) when an obvious and plausible alternative solution exists