Question 1: A manager performs a financial analysis of each alternative in order to determine which alternative is most likely to impact the organization's profitability. This manager is focusing on which criterion for decision-making?
Answer
Practicality
Ethicalness
Economic feasibility
Dialectical inquiry
Legality
Question 2
According to the administrative model of decision making, if managers cannot possibly specify all of the possible alternatives to a decision, this is the result of:
Answer
incomplete information.
bounded rationality.
an optimum decision.
brainstorming.
Question 3
PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants. This was an example of:
Answer
horizontal integration.
vertical integration.
a low-cost strategy.
a global strategy.
a diversification strategy.
Question 4
The explosion of the space shuttle Challenger is an example of poor managerial decision-making wherein managers neglected the criterion of __________.
Answer
ethicalness
practicality
legality
economic feasibility
devil's advocacy
Question 5
GE Financial Services is an example of which level of management operations for General Electric Company?
Answer
Functional
Corporate
Divisional
Departmental
Question 6
When managers cannot assign probabilities of future occurrence to possible alternatives to a decision, this is known as __________.
Answer
certainty
risk
bounded rationality
uncertainty
dialectical inquiry
Question 7
An organization creates a list of possible future forecasts of business situations and creates a plan to respond to each of these forecasts. This is known as __________ planning.
Answer
synergy
ad hoc
divisional-level
scenario
functional
Question 8
In the Five Forces Model, the type of competitive activity that exists between organizations is known as the:
Answer
potential for entry into the industry.
threat of substitute products.
power of customers.
level of rivalry.
power of suppliers.
Question 9
When an organization updates its five-year plan annually in order to take into account changing conditions within the organization and in the organization's external environment, this is known as which type of plan?
Answer
Inflexible
Functional
Rolling
Scenario
SWOT
Question 10
When a manager makes a decision based on a generalization from a very small sample of information, this is known as:
Answer
dialectical inquiry.
systematic errors.
devil's advocacy.
representative bias.
the illusion of control.