Understanding Management
10th Edition
ISBN: 9781337333375
Author: Richard L. Daft; Dorothy Marcic
Publisher: Cengage Learning US
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Question
Chapter 6, Problem 3AL
Summary Introduction
To determine:
The difference in the decision making of the two situations.
Introduction:
Decision making refers to the thought process which is taken into consideration for choosing a logical option from available alternatives. An individual should weight the negative and positive associated with each option while striving to make a good decision. An individual is required to forecast the result associated with each choice or option so as to have an effective decision making
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Chapter 6 Solutions
Understanding Management
Ch. 6 - Prob. 1OTJVCCh. 6 - Prob. 2OTJVCCh. 6 - Prob. 3OTJVCCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQ
Ch. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 1SLCh. 6 - Prob. 2SLCh. 6 - Prob. 3SLCh. 6 - Prob. 4SLCh. 6 - Prob. 5SLCh. 6 - Prob. 6SLCh. 6 - Prob. 7SLCh. 6 - Prob. 8SLCh. 6 - Prob. 9SLCh. 6 - Prob. 10SLCh. 6 - Prob. 1GLCh. 6 - Prob. 1ALCh. 6 - Prob. 2ALCh. 6 - Prob. 3ALCh. 6 - Prob. 4ALCh. 6 - Prob. 1EDCh. 6 - Prob. 2EDCh. 6 - Prob. 3EDCh. 6 - Prob. 1CFCACh. 6 - Prob. 2CFCACh. 6 - Prob. 3CFCA
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- . Mention four early warning indicators that a business may be at risk.arrow_forward5. A risk that has both a high impact and high probability is referred to as A. Negligible B. Moderate C. Low D. Extreme 6. A business continuity plan is mainly used to_ A. Increase profits B. Handle daily tasks C. Prepare for disruptions D. Advertise services 7. What is the role of a risk owner? A. To finance the risk B. To monitor and manage a specific risk C. To create risks D. To avoid planning 8. Early warning indicators help businesses to A. Avoid legal actions B. Grow rapidly C. Detect potential risks D. Hire employees 9. A hazard-based risk includes A. Political instability B. Ergonomic issues C. Market demand D. Taxation changesarrow_forward1. What is the primary purpose of risk management in small businesses? A. To eliminate all risks B. To predict profits C. To reduce and control risks D. To create new risks 2. Which of the following is a type of operational risk? A. Interest rate change B. Natural disaster C. Supplier failure D. Tax policy change 3. SWOT analysis identifies all EXCEPT A. Strengths B. Weaknesses C. Tactics D. Opportunities 4. Which strategy involves taking no action against a risk? A. Mitigation B. Avoidance C. Acceptance D. Transferarrow_forward
- 5. A risk that has both a high impact and high probability is referred to as A. Negligible B. Moderate C. Low D. Extreme 6. A business continuity plan is mainly used to_ A. Increase profits B. Handle daily tasks C. Prepare for disruptions D. Advertise services 7. What is the role of a risk owner? A. To finance the risk B. To monitor and manage a specific risk C. To create risks D. To avoid planning 8. Early warning indicators help businesses to A. Avoid legal actions B. Grow rapidly C. Detect potential risks D. Hire employees 9. A hazard-based risk includes A. Political instability B. Ergonomic issues C. Market demand D. Taxation changesarrow_forward1. What is the primary purpose of risk management in small businesses? A. To eliminate all risks B. To predict profits C. To reduce and control risks D. To create new risks 2. Which of the following is a type of operational risk? A. Interest rate change B. Natural disaster C. Supplier failure D. Tax policy change 3. SWOT analysis identifies all EXCEPT A. Strengths B. Weaknesses C. Tactics D. Opportunities 4. Which strategy involves taking no action against a risk? A. Mitigation B. Avoidance C. Acceptance D. Transferarrow_forwardList and briefly describe four risk response strategies.arrow_forward
- Explain the purpose of a risk register.arrow_forwardAssume that your business is going to apply for a bank loan. Step into the shoes of a banking official who has the power to say yes or no to your loan application. From the bank’s vantage point, what are the strengths and weaknesses of your business plan? Does your plan seem realistic, given the financial assumptions and the business environment? What questions would you, as a bank officer, ask about your business plan? As the entrepreneur behind the business plan, how would you answer these questions and persuade the bank to approve your loan? Write up your questions and answers in one paragraph. Then use what you’ve learned to further strengthen your plan.arrow_forwardAssume that your business is going to apply for a bank loan. Step into the shoes of a banking official who has the power to say yes or no to your loan application. From the bank’s vantage point, what are the strengths and weaknesses of your business plan? Does your plan seem realistic, given the financial assumptions and the business environment? What questions would you, as a bank officer, ask about your business plan? As the entrepreneur behind the business plan, how would you answer these questions and persuade the bank to approve your loan? Write up your questions and answers in one paragraph. Then use what you’ve learned to further strengthen your plan.arrow_forward
- Even before you launch your business, you have to be ready to handle the funds that will flow in and out as you buy raw materials, pay rent, receive customer payments, and reserve cash to pay taxes. Which financial services should you have in place on your first day in business? Which might be needed months later, after you’ve established your business? Write two to three sentences about your company’s need for financial services, now and during the first year.arrow_forwardChester has negotiated a new labor contract for the next round that will affect the cost for their product Camp. Labor costs will go from $3.65 to $4.15 per unit. Assume all period and variable costs as reported on Chester's Income Statement remain the same. If Chester were to pass on half the new labor costs to their customers, how many units of product Camp would need to be sold next round to break even on the product? Select : 1 a) 1,826 b) 1,916 c) 1,743 d) 2,428arrow_forwardPremises: Alpha, Inc. has contemplated taking over a similar but less well-known corporation. If the merger takes place, Alpha, Inc. will probably change its name and temporarily lower its prices. If the prices are reduced, more merchandise is expected to be purchased. If more merchandise is purchased, more employees will be hired. Alpha, Inc. took over the less well-known corporation. Conclusion:Alpha, Inc. was renamed and more employees were hired. Options: Necessarily true. Probably, but not necessarily, true. Indeterminable, cannot be determined. Probably, but not necessarily, false. Necessarily false.arrow_forward
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