SECTION I-MULTIPLE CHOICE (one point each) Total 25 points

The initial step in a problem solving, decision situation is:
a. problem recognition b. data analysis c. generation of alternatives d. feedback

In the rational model, the decision maker strives to:
a. satisfice b. optimize c. select the alternative agreeable to the majority d. apply a heuristic

An important element of the bounded rationality model is:
a. certainty b. satisficing c. unlimited information search d. optimizing

You own and operate a small pizza shop. The shop has been profitable but it needs renovation. You start the renovation only to discover that a pizza chain has bought a vacant building two blocks away and plans to open a shop within 120 days. Undoubtedly, competition will intensify. You decide to accelerate renovation work. You are trying to:
a. escalate the risk b. avoid risk c. greatly minimize risk d. better manage risk by trying to improve your shop significantly before the other one opens

Continuing to support a failing course of action is known as:
a. the theory of sunk costs b. stubbornness c. conflicted reason theory d. escalation of commitment

The right side of the brain is best used for which type of activity or decision?
a. flowchart work process b. develop visions and strategic plans c. day-to-day operations d. tax preparations

An organization should do or provide all of the following except __________ if it wants to encourage employee creativity.
a. close supervision b. participative decision making c. peer support d. flexible organizational structure

Participative decision making tends to be associated with:
a. interpersonal rivalry within a group b. less creativity among employees c. rapid decision making d. higher levels of employee job satisfaction

An approach to minimize groupthink is to:
a. manipulate group members in order to increase peer pressure b. encourage rationalization c. denigrate…