85) Emily Boyce, a project manager at an insurance firm, regularly satisfices while making
decisions. She often comes across complicated problems which would take a long time to
resolve. Due to the pressing deadlines, she often meets project goals by satisficing a large
number of her decisions. Which of the following is Boyce most likely to do?
A) seek complete information while making decisions
B) search for solutions that are reasonable
C) identify all possible options to solutions
D) analyze each alternative in an unbiased manner
E) choose the optimal solution to each problem
86) A process of making decisions by constructing simplified models that extract the essential
features from problems without capturing all their complexity is known as ________.
A) optimal decision making
B) intuitive decision making
C) bounded rationality
D) active selection
E) incremental decision making
87) ________ is an unconscious process created from distilled experience.
A) Process consultation
B) Action research
C) Intuitive decision making
D) Active selection
E) Emotional intelligence
88) Which of the following is true about intuitive decision making?
A) It is a slow process of decision making.
B) It is devoid of emotions.
C) It is the most rational way of making a decision.
D) It occurs within conscious thought.
E) It involves making decisions based on distilled experience.
89) Phyllis Stintson needs to decide whether to start a campaign against deforestation in
Indonesia. Though her research team has provided substantial information on the high feasibility
of the project, Stintson does not go ahead with the project. If Stintson made her decision by
drawing unconscious references from several different experiences in the past, her decision is
most likely influenced by which of the following?
A) optimization
B) intuition
C) fundamental attribution error
D) framing effect
E) anchoring bias
90) The rational decision-making model takes into consideration the fact that all information
pertaining to a problem might not be available to the decision maker.
91) Men make better decisions than women.
92) What is bounded rationality? How is it related to decision making?
93) What is intuitive decision making? Explain.
94) Which of the following terms refers to a situation in which a person inaccurately perceives
another person and the resulting expectations cause the other person to behave in ways consistent
with the original perception?
A) confirmation bias
B) self-fulfilling prophecy
C) attribution theory
D) contrast effect
E) bandwagon effect
95) Sarah Covington, a sales manager at Synergy Corporation Bank, often keeps low
expectations of her team. She feels that they are underqualified for their job and do not have
substantial experience to sell a large number of accounts. Covington’s team does not feel
motivated enough and invariably underperforms and misses targets on a regular basis. Which of
the following concepts best explains Covington’s team’s poor performance?
A) hindsight bias
B) self-fulfilling prophecy
C) confirmation bias
D) contrast effect
E) bandwagon effect
96) The tendency to seek out information that reaffirms past choices and to discount information
that contradicts past judgments is known as a(n) ________ bias.
A) distinction
B) omission
C) impact
D) confirmation
E) anchoring
97) ________ bias refers to the tendency for people to base their judgments on information that
is easily accessible.
A) Anchoring
B) Availability
C) Overconfidence
D) Confirmation
E) Hindsight
98) Which of the following types of biases is most likely to play a significant role during a
negotiation?
A) impact bias
B) normalcy bias
C) distinction bias
D) anchoring bias
E) status quo bias
99) Consumers increasingly choose to purchase goods and services from organizations with
effective corporate social responsibility (CSR) initiatives.
100) Women are more likely than men to overanalyze problems before making a decision and to
rehash a decision once made.
101) Explain the effect of gender on decision making.
102) The ________ bias is a tendency to fixate on initial information and fail to adequately
adjust for subsequent information.
A) hindsight
B) overconfidence
C) anchoring
D) availability
E) self-serving
103) Jeanne Edwards works as a campaign manager at Rainforest Alliance Trust, a forest
protection organization in Indonesia. She is currently working on the Palm Oil Campaign, which
aims to establish stringent laws against companies which aggravate deforestation by extracting
palm oil for commercial use. Her role is to establish allies with other forest protection
organizations and companies which use eco-friendly products that set good examples for other
companies to follow. Jeanne allied with Griffin and Powell, a large multinational company,
which, unknown to Jeanne, also has strong ties with local logging groups in Jakarta. Which of
the following, if true, would strengthen the argument that Jeanne had an availability bias while
establishing an ally with the company?
A) Griffin and Powell ensures that all their CSR initiatives on forests are regularly and
substantially publicized.
B) Jeanne has adequate experience in leading such campaigns.
C) Jeanne is well acquainted with various research techniques.
D) Jeanne has access to environmental records maintained by the Information Ministry.
E) Rainforest Alliance Trust has strong networks with local environmental research
organizations.
104) Johanna Murray, a climate campaigner at The National Footprint Foundation, is known in
her organization to be a campaigner of caliber and high performance. She has strong networks
with the Ministry of Environment and allies with several environmental organizations in the
country. Over the years, she has gained substantial knowledge on the issue of climate change.
However, recently when she prepared a consolidated report on a conference she attended on
climate change, it reflected major loopholes and limited information from the conference. Which
of the following, if true, substantiates that Johanna had an anchoring bias?
A) Johanna was moved by the arguments put forth by the first speaker.
B) Johanna participated actively in the interactive session conducted at the end.
C) The speakers at the conference consisted of renowned environmental scientists and activists.
D) Johanna has attended several conferences where the panel consisted of eminent scientists.
E) Johanna was shocked by the startling facts shown during the concluding session.
105) According to the concept of ________, decisions are made solely on the basis of their
outcomes, ideally to provide the greatest good for the greatest number.
A) utilitarianism
B) selective perception
C) self-fulfilling prophecy
D) halo effect
E) contrast effect
106) Individuals who report unethical practices by their employer to outsiders are known as
________.
A) change agents
B) boundary spanners
C) early adopters
D) whistle-blowers
E) free riders
107) A focus on utilitarianism creates an environment that hinders productivity and efficiency.
108) Explain how stereotyping can cause problems for some managers when making ethical
decisions. Provide an example.
109) What are the three ethical decision criteria? Explain.
110) Which of the following is a component of the three-component model of creativity?
A) expertise
B) logical thinking skills
C) extrinsic task motivation
D) intuition
E) analytical skills
111) The three-component model of creativity proposes that individual creativity essentially
requires expertise, creative thinking skills, and ________.
A) external locus of control
B) intrinsic task motivation
C) emotional intelligence
D) positivity offset
E) selective perception
112) Describe and explain the four steps of creative behavior.
113) Explain the three components of creativity. Name two biases and give examples of how
they would affect creativity.