Multiple Choice Questions CHAPTER 7

56. When confronted with a choice, people with strong prior beliefs tend to make their decisions based on
their beliefs even if their beliefs are false. This is known as ____. 
A.  prior-hypothesis bias

B.  narrow-minded perception

C.  tunnel vision bias

D.  the curse of knowledge

E.  single-vision stereotyping

57. A choice made from among available alternatives is a ____. 

A.  decision

B.  plan

C.  goal

D.  consensus

E.  value statement

58. George, a longtime hotel manager, was meeting with Sally, a new manager, and telling her about a
recent decision related to whether or not to fire a front desk employee who has had customer service
issues. George discussed the four stages of the decision process. He said, "I first identified the problem,
and then, I gathered alternative solutions. I then evaluated each choice and selected a solution. I then
implemented my decision to add training. Finally, I followed up with an evaluation of what I set in
place." With this decision, George is using the ______. 
A.  employee relations model

B.  focused decision-making model

C.  interpersonal-decision agenda

 D.  solutions agenda

E.  rational decision-making model

59. The model of decision making that explains how managers should make decisions, assuming managers
will make logical decisions that will be the optimum in furthering the organization's best interests, is
known as the ____. 
A.  employee relations model

B.  focused decision-making model

C.  interpersonal-decision agenda

D.  solutions agenda

E.  rational decision-making model

60. Alex is the R&D manager with Digital Copier. The company is having a problem with one of its most
popular copiers jamming. The vice president of marketing told Alex that "we need to quickly discover
how to make this a desirable situation. You need to determine the underlying cause of the problem
and perhaps even make improvements to the copier." This is an example of ____. 
A.  synergy

B.  diagnosis

C.  analytics

D.  feasibility

E.  MBO

61. Leon is an investment portfolio manager. While sitting in a training workshop, the facilitator mentioned
that "your female investors make trades much less often than men because they ____." 
A.  take longer to make decisions because of their busy lives
 B.  do more research, and tend to base their investment decisions on considerations other than just
numbers

C.  rely strictly on intuition

D.  are overcoming problems with the glass ceiling

E.  endeavor to involve their family in decisions and it takes longer to get agreement

62. In the third step of rational decision making (evaluating alternatives and select a solution), you need to
evaluate each alternative not only according to cost and quality but also according to the following
questions: _____ 
A.  Is it efficient and how will it affect our marketing strategy?

B.  Is it feasible, effective, and efficient?

C.  Is it ethical and will it hurt diversity?

D.  Is it ethical, feasible, and effective?

E.  Is it feasible and profitable?

63. Jose, the sales manager, is working on the problem of increasing sales by using the rational model of
decision making. In the first step he identified the problem of his employees needing more training. In
the second step he thought of alternative solutions; and in step three he evaluated alternatives and
selected a solution. In the fourth step, Jose needs to _____. 
A.  do more research to look at types of training

B.  select a contingency plan

C.  implement and evaluate the training program chosen

D.  determine how costly the solution will be

E.  set up a diversity and synergy training plan to increase the chances of success
64. The rational model of decision making is also called the ____ model. 
A.  focused

B.  analytical

C.  decision

D.  classical

E.  logical

65. Doug is using rational decision making, and the chosen alternative that was implemented does not
appear to be working. To correct the situation, the possibilities Doug should consider _____. 
A.  give it more time, change it slightly, try another alternative, or start over

B.  give it more time or do not change anything

C.  do nothing

D.  give it more time, cut costs, or increase organization synergy

E.  do nothing or start over

66. Difficulties that inhibit the achievement of goals are known as _____. 
A.  objectives

B.  synergies

C.  values

D.  problems

E.  alternatives

 
67. Patricia is the owner of a floral shop. A successful global candle company approached her about selling
its products in her shop. Patricia knows this product and company can help her exceed her existing
goals. This defines a(n) ____. 
A.  problem

B.  opportunity

C.  synergy

D.  ethical dilemma

E.  diagnosis

68. With the community interested in eating healthy, Sue Ellen, a restaurant owner, is considering adding
more vegetarian dishes to her menu. This decision is uncertain and risky, and she finally decides to
goes with her gut feelings. This is an example of _______. 
A.  rational decision making

B.  MBO

C.  nonrational decision making

D.  analytics

E.  a code of ethics

69. The idea that proposes that the ability of decision makers to be rational is limited by numerous
constraints, such as complexity, time, cognitive capacity, values, skills, habits, and unconscious
reflexes, is known as _____. 
A.  rational decision making

B.  MBO

C.  nonrational decision making

D.  analytics
 E.  bounded rationality

70. Susanne, the CEO of national IT manufacturer, was approached by Simple Phones, a new company that
is marketing a new type of phone, to partner with the company on a project. The partnership is
uncertain since the company and technology are new. Susanne is uncertain what to do because she is
limited by numerous constraints, such as the uncertainty and complexity of the technology, the
management success of Simple Phones, and time, since other companies are interested in the
partnership. This is an example of _____. 
A.  an ethical dilemma

B.  bounded rationality

C.  groupthink

D.  a bounded dilemma

E.  limited scope

71. Paula, the controller of Tasty Pizza, is purchasing several new delivery vehicles. Paula has numerous
work responsibilities, so she has limited time to shop for cars. Because of the time constraints, she
cannot make an extensive search for the best alternative but instead needs to look for cars until she
finds one that is satisfactory. Paula is following the _____ model. 
A.  dilemma

B.  rational

C.  limited focus

D.  satisficing

E.  limited scope

72. Chad and his partner, John, have decided to update their computer network, although they have no
expertise in this area. During a meeting with John, Chad commented that "Our decision is limited by
 numerous constraints, such as our understanding of the complexity of technology, time and money,
imperfect information, and our conflicting goals." These limitations are hindrances to _____. 
A.  satisficing

B.  rational decision making

C.  intuitive decision making

D.  MBO

E.  nonrational decisions

73. Sal has been in the landscaping business for over 40 years, and when Donovan, his business partner,
suggested adding snow removal as an extra service, Sal responded with "My gut feeling is to say yes
because of my experience in the past and what I have seen other companies do over the years, both
successfully and not." Sal's response to Donovan is known as _____. 
A.  a knowledge dilemma

B.  a business reaction

C.  a knee-jerk reaction

D.  unbounded rationality

E.  intuition

74. Olivia, the owner of a small city newspaper, started her business two years ago, believing that there
was still enough demand for her product. However, because people are busy and with the availability
of news online, she has seen the demand for her paper drop steadily. Olivia made a decision to change
the original direction of the company and focus more on an Internet news service. By demonstrating
that managers need to think and act as if their company is an unfinished prototype, won't be ruined by
new ideas and focusing on facts, Olivia is relying on _____. 
A.  a decision tree

B.  a knowledge dilemma

 C.  the knee-jerk reaction theory

D.  evidence-based decision making

E.  intuition

75. Despite your best intentions, it's hard to bring the best evidence to bear on your decisions because of
such reasons as ____. 
A.  it is too expensive; it's not ethical and there's not enough good evidence

B.  it will hurt diversity and synergy within your organization

C.  there's no competition or there's too much competition

D.  there's too much evidence; there's not enough good evidence and the side effects outweigh the
cure

E.  people are trying to mislead you and it will not allow MBO

76. Style Mart uses time-series forecasts, such as past holiday sales and the strength of store sales this
year to predict future sales based on patterns of historical data. This is an application of ___. 
A.  analytics

B.  the synergy trend

C.  decisions by trends

D.  focused trend

E.  Big Data

77. A data-mining technique used to predict future behavior and anticipate the consequences of change is
known as ___. 
A.  data digging
 B.  the decision tree

C.  decisions by trends

D.  predictive modeling

E.  GIGO

78. ABC Medical Technology, a fast-growing global research firm, has accumulated so much client
information that conventional database management systems cannot handle its customer needs.
Therefore, it purchased very sophisticated analysis software and supercomputing-level hardware. For
the company's work with hospitals and university medical schools, ABC has been noted in publications
as "real pioneers for innovation and productivity." This vast amount of data is known as ____. 
A.  cyber-age databases

B.  mega IT

C.  super data

D.  new age computing

E.  Big Data

79. The combination of how an individual perceives and responds to information reflects his or her ____. 
A.  location on the introvert/extrovert scale

B.  decision-making style

C.  time orientation

D.  Big Data perception

E.  ambiguity index

80. The process of studying large amounts of data of a variety of types to uncover hidden patterns,
 unknown correlations, and other useful information is known as ____. 
A.  cyber-age research

B.  mega research

C.  super market data mining

D.  new age computing

E.  Big Data analytics

81. Debbie likes working in the banking industry because there is a lot of structure and certainty, and the
daily work is routine. Debbie probably _____. 
A.  has a high tolerance for ambiguity

B.  has a large need for ambiguity

C.  has a low tolerance for ambiguity

D.  is in the middle ambiguity range

E.  thrives on ambiguity

82. Dave is a salesperson who takes a long time to make decisions. He loves sales because he responds
well to the pressure he faces in the many new or uncertain situations as a salesperson. Like most
successful salespeople, he is high in his tolerance for ambiguity. Dave represents a person with a(n)
_____ style. 
A.  directive

B.  conceptual

C.  ambiguous

D.  behavioral

E.  analytical
 

83. Marie is a small-business owner who loves to take risks. She also enjoys going out and meeting
customers and potential clients—the social aspect of her job. Marie relies on intuition and discussions
with others to acquire information. As an interior decorator, Marie utilizes her imaginative strengths,
taking a broad perspective to problem solving, and she likes to consider many options and future
possibilities. Marie represents a person with a(n) _____ style. 
A.  directive

B.  conceptual

C.  ambiguous

D.  behavioral

E.  analytical

84. Mandy, a server in a popular family restaurant, is the most popular employee with both customers and
employees, and as a result, she usually receives the most tips. She is always ready to lend a hand when
asked, and with her warm personality and supportive nature, people confide in her. Mandy does have
a problem telling people no, and has a tendency to avoid conflict, concerned about hurting others or
getting people mad. Mandy represents a person with a(n) _____ style. 
A.  directive

B.  conceptual

C.  ambiguous

D.  behavioral

E.  analytical

85. Sam is the production manager of a busy shoe factory. He was chosen because prior to his promotion
he had proven himself to be very efficient, and as a department manager he had a logical and practical
approach to solving problems. Sam has a reputation for being decisive and getting things done. Most of
the employees like Sam, but they feel his style is autocratic, as he likes to do things by the book. Sam
 represents a person with a(n) ______ style. 
A.  directive

B.  conceptual

C.  ambiguous

D.  behavioral

E.  analytical

86. Scott has a bachelor's degree in ethics and human resources, and has extensive experience working
with employees and managers regarding ethics, especially in the area of ethical dilemmas. With his
background of dealing with legal issues, he has assisted extensively in determining if decisions are both
ethical and lawful. With Scott's background, he is a top candidate for the company's new _____. 
A.  board of directors position

B.  values specialist

C.  ethical dilemma watchdog

D.  decision tree manager

E.  ethics officer

87. A decision tree is ____. 

A.  a structure of problem-solving ideas, with its roots based on the organization's mission

B.  the hierarchy that must be followed when getting decisions approved

C.  a graph of decisions and their possible consequences

D.  a location used by Chinese philosopher Confucius in times of intense pressure

E.  an organization's decision network

 

88. Is the proposed action legal? If yes, does the proposed action maximize shareholder value? If yes, is the
proposed action ethical? If no, would it be ethical not to take the proposed action? These are four
questions that managers of all organizations should ask when confronted with a decision on an action
according to _____. 
A.  Maslow's hierarchy of needs

B.  the stakeholder's value statement

C.  Frank Gilbreth's code of ethical conduct

D.  Bagley's ethical decision tree

E.  the Sarbanes-Oxley Act of 2002

89. Patty, the CEO of an oil drilling company, and her top management team recently discovered that their
facilities are damaging an Asian beach and the local wildlife. They understand that they need to decide
if temporarily closing or not closing the facility is unethical. They then consider the four questions: Is
not temporarily closing the facility legal? If yes, does this proposed action maximize shareholder value?
If yes, is not temporarily closing the facility ethical? If no, would it be ethical not to take the proposed
action? These are suggested questions according to _____. 
A.  Bagley's ethical decision tree

B.  Maslow's hierarchy of needs

C.  the stakeholder's value statement

D.  Frank Gilbreth's code of ethical conduct

E.  the Sarbanes-Oxley Act of 2002

90. The decision was made by BP and Halliburton executives regarding not taking action with the oil well
blowout preventer that experts believe would have prevented the Deepwater Horizon oil rig explosion
and fire off the coast of Louisiana, since company management believed that there would be no great
negative consequences as a result of their decision. This is an example of ___. 
A.  satisficing
 B.  panic

C.  the curse of knowledge

D.  relaxed avoidance

E.  relaxed change

91. Dwight, a hotel general manager, is having serious problems—a substance abuse issue—with one of
his housekeeping employees. He knows that because of the seriousness of the issue he needs to talk
with the employee. However, his assistant manager asks Dwight if he would like him to deal with it.
Dwight knows this is not the best option, but agrees, knowing it is the easy way out. This is an example
of _____. 
A.  relaxed avoidance

B.  relaxed change

C.  defensive avoidance

D.  panic

E.  intuition

92. With defensive avoidance, a manager can't find a good solution and follows by ____. 
A.  doing nothing

B.  doing anything to get rid of the problem

C.  choosing the first available alternative that involves low risk

D.  procrastinating, passing the buck, or denying the risk of any negative consequences

E.  perhaps getting the police or legal authorities involved

 
93. Ace Manufacturing has high turnover continually due to issues with the corporate office. Paul, the
plant manager, is frustrated and cannot find a solution to stop it. At first he offered raises to many of
the good employees who were leaving, but after a while, Paul started blaming those who were leaving,
saying, "they are poor-quality employees and they are to blame for leaving." Paul is engaged in ____. 
A.  panic

B.  relaxed change

C.  blind avoidance

D.  defensive avoidance

E.  delayed change

94. Orlando, the manager of a camera store, believes that his store may be closed by corporate in the near
future, so he cannot sleep well at night and he is dealing with severe anxiety, irritability, and has been
ill several times this month. Several times Orlando has missed important details in his job, and he
almost got in an automobile accident this morning. Orlando is experiencing ____. 
A.  panic

B.  management by avoidance

C.  inward attack

D.  blind avoidance

E.  an outer defensive avoidance

95. How high priority is this situation? How believable is the information about the situation? How quickly
must I act on the information about the situation? These are three questions concerning ways to
evaluate _____. 
A.  outcomes, credibility, ethics

B.  priorities, reliability, service

C.  analytics, heuristics, credibility

 D.  importance, credibility, urgency

E.  profitability, reliability, efficiency

96. Gregory was talking with Tom, his assistant manager, saying, "When I make a decision on which
employee to pick to do a project, I use three simple factors, which I call my decision making "rules of
thumb." I consider their attitude and knowledge, and how hard they work." Gregory's rules of thumb,
which he uses in decision making, are known as _____. 
A.  thought steps

B.  decision steps

C.  planning model

D.  the domino effect

E.  heuristics

97. Readily available information may not present a complete picture of a situation due to ____. 
A.  availability bias

B.  information bias

C.  the representativeness effect

D.  anchoring and adjustment bias

E.  confirmation bias

98. When Dave, the sales manager, is deciding on who will train the new sales trainee, he tries not to look
at just the recent sales numbers but also checks past sales reports to determine who is the most
productive. This way he is not affected by the ______ bias. 
A.  sunk-cost
 B.  adjustment

C.  representativeness

D.  availability

E.  escalation of commitment

99. Paul, the store manager, recently had to fire Sue, an employee who graduated from North College. He
felt that Sue was not well trained at her school. So when Steven, also a graduate from North College,
applied for Sue's old position, he did not want to consider hiring him, feeling Steven also probably did
not receive the proper training. Paul was affected by _____ bias. 
A.  blind

B.  training

C.  confirmation

D.  representativeness

E.  adjustment

100. When people seek information to support their point of view and discount data that do not, this is
______ bias. 
A.  blind

B.  overconfidence

C.  Confirmation

D.  representativeness

E.  framing

101. Malik and his managers spent a large sum of money on the new training program, and they feel that
 there has been little improvement as a result of the investment. The training is scheduled to continue
for two more months, and Malik feels that with all the money already spent on the project, it is too
costly to simply abandon it. This is known as ______. 
A.  blind bias

B.  a training trap

C.  confirmation bias

D.  sunk-cost bias

E.  a catch-22 effect

102. Phillip and Meg are selling their home. They listed their house three months ago at an extremely high
selling price, a price they randomly chose. They do not want to come down on their price to reflect
what the marketplace shows their home is really worth. This is an example of ______. 
A.  blind bias

B.  ego bias

C.  confirmation bias

D.  sunk-cost bias

E.  anchoring and adjustment bias

103. The predisposition in which people's subjective confidence in their decision making is greater than
their objective accuracy is ____. 
A.  confidence bias

B.  overconfidence bias

C.  hindsight bias

D.  predisposition bias

 E.  the tunnel vision effect

104. In the political ads for Representative Joe Smith, the Democratic candidate, he is portrayed by the
Republican-sponsored ads as being dishonest and poor at his job. Yet, the ads for Joe Smith, which are
paid for by the Democratic supporters, describe him as being caring, honest, and a hard worker. The
sponsors of these advertisements know that ads can affect whom voters choose on Election Day. This
tendency of decision makers, the voters in this case, to be influenced by how a situation or problem is
presented to them is known as ____. 
A.  framing bias

B.  stirring the waters

C.  goal displacement

D.  overconfidence bias

E.  the fog effect

105. Peter, the owner, is even more committed to making the used copier, which he recently purchased,
work even though it keeps jamming and people have been telling him about other problems they have
been having with it. Peter is affected by ______. 
A.  the framing effect

B.  the narrow focus bias

C.  the anchoring and commitment bias

D.  the escalation of commitment bias

E.  the fog effect

106. The prospect theory suggests that ____. 

A.  decision makers are influenced by the way a situation or problem is framed

B.  decision makers have too much confidence in their own abilities
 C.  decision makers tend to make judgments based on an initial impression

D.  decision makers can't abandon an idea that costs too much money

E.  decision makers find the notion of an actual loss more painful than giving up the possibility of a
gain

107. The tendency of people to view events as being more predictable than they really are known as _____. 
A.  framing bias

B.  hindsight bias

C.  sunk-cost bias

D.  narrow focus bias

E.  the fog effect

108. Having a greater pool of knowledge, gaining different perspectives, gaining intellectual stimulation,
having a better understanding of decision rationale, and having a deeper commitment to the decision
are advantages of ____. 
A.  group decision making

B.  deeper commitment to the decision

C.  less thought required

D.  a quicker decision

E.  more flexibility in the final decision

109. Goal displacement, satisficing, and groupthink are ____. 

A.  advantages of group decision making
 B.  disadvantages of individual decision making

C.  disadvantages of group decision making

D.  problems with synergy

E.  a normal aspect of all groups

110. Greg, Donna, and Paul are on the five-member Benefits Task Force that is researching options for the
new benefits package. Over lunch, Greg, Donna, and Paul decided that adding Choice Health Club is a
good idea, and that they plan on voting to agree to add it without ever researching and accurately
assessing the decision. This is an example of ____. 
A.  groupthink

B.  heuristics

C.  the Delphi technique

D.  group marketing

E.  goal displacement

111. Satisficing is the tendency of ____. 

A.  people to view events as being more predictable than they really are

B.  decision makers to be influenced by the way a situation or problem is presented to them

C.  a group to settle on a decision that is "good enough"

D.  people to see events based on what has happened in the past

E.  group members to agree for the sake of unanimity and thus avoid accurately assessing the decision
situation

 
112. The Safety Committee at Office Supply Mart was formed to help make the stores a safer place, and
some of the suggestions were going to be costly. However, when the vice president of accounting
announced the recent report on company profits were much lower than expected, a new secondary
goal was established to meet new profit expectations. Having to consider this new goal as a committee
is an example of ____. 
A.  goal bumping

B.  groupthink

C.  secondary placement

D.  satisficing

E.  goal displacement

113. Regarding decision making, research has found that ____. 

A.  individuals acting alone make better decisions than groups

B.  group decisions seldom are of the quality of individual decisions

C.  groups tend to be less productive than the best individuals working on projects

D.  groups make better decisions than most individuals acting alone

E.  neither individuals acting alone nor groups make better-quality decisions

114. When it comes to decision making, it is accurate to say that groups _____. 
A.  take less time to make decisions, and their decision-making accuracy is higher

B.  take less time to make decisions, and the larger the group, lower the quality of the decision

C.  have higher decision-making accuracy when group members know a good deal about the relevant
issues

D.  that are larger make higher-quality decisions

 E.  take less time to make decisions, and are more confident about their choices than individuals are

115. Roberta, the computer department manager at IT Mart, is considering if she should use a group to
develop a plan to help employees sell extended warranties on technology sales. Roberta should
consider having the group make this decision if ______. 
A.  time is of the essence

B.  it will increase acceptance of the plan

C.  group members are not knowledgeable and need to learn more

D.  group members are overly confident about decision making

E.  the decision making group is exceptionally large

116. A technique used to help groups generate multiple ideas and alternatives for solving problems is
known as _____. 
A.  groupthink

B.  Big Data

C.  MBO

D.  brainstorming

E.  framing

117. The Delphi technique is a group process that uses physically dispersed experts who fill out
questionnaires to ____. 
A.  form a diversity plan

B.  anonymously generate ideas

C.  cut costs and increase efficiency

 D.  develop a synergy agenda

E.  generate sales

118. Doug, a new manager, commented to a friend, "I am excited about different aspects of my new job.
The company computers have entered the field of decision making. The network not only collects
information more quickly, but the system also reduces the roadblocks when I need a group
consensus." Doug is referring to _____. 
A.  the Delphi technique

B.  collaborative management

C.  brainwriting

D.  a computer-aided decision-making system

E.  brainstorming

119. A computer-based information system that provides a flexible tool for analysis and helps managers
focus on the future is known as a(n) _____. 
A.  IT synergy web

B.  collaborative IT system

C.  group-web

D.  flexible computing system

E.  decision support system