6. Most business decisions are made under conditions of either risk or uncertainty. In youropinion, is it easier to make a decision under a condition of risk or a condition ofuncertainty? Why?.Feb 12, 2022, 12:45 PMAccessibility: Unavailable

Decision-making is an important aspect of every organization. It is a process of selecting the best…

Answered: 6. Most business decisions are made…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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You've heard the expression "no pain, no gain"? In the investment world, the comparable phrase would be "no risk, no reward." How you feel about risking your money will drive many of your investment decisions. The risk-comfort scale extends from very conservative (you don't want to risk losing a penny regardless of how little your money ears) to very aggressive (you're willing to risk much of your money for the possibility that it will grow tremendously). As you might guess, most investors' tolerance for risk falls somewhere in between. If you're unsure of what your level of risk tolerance is, this quiz should help. 8. You want to take someone out for a special dinner in a city that's new to you. How do you pick a place? (a) read restaurant reviews in the local newspaper, (b) ask co-workers if they know of a suitable place, (c) call the only other person you know in this city, who eats out a lot but only recently moved there, (d) visit the city sometime before your dinner to check out…
It is Spring, 2020. In response to the COVID-19 pandemic, a major worldwidepharmaceutical company is doing some initial development of a vaccine. At thesame time, they are in discussions with some researchers at a university in England.These researchers began work quite some time ago seeking a vaccine for anothervirus, but the same research can be applied to COVID-19.Now the pharmaceutical company must make a decision. They could:(i) Abandon the project.(ii) Develop their own vaccine.(iii) Go into a partnership with the university.Developing their own vaccine would cost (all figures are in USD) 900 million, andwould have a 40% chance of being successful (i.e. taking the vaccine would actuallyprevent infection by the virus). However, it would then need extensive testing tomake sure that there are no (or at worst, few) unintended side effects. Dependingon what is discovered during the development of the vaccine, there’s a 15% chanceof needing extensive testing, and an 85% chance of…
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6. Most business decisions are made under conditions of either risk or uncertainty. In your opinion, is it easier to make a decision under a condition of risk or a condition of uncertainty? Why?.