Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 1
File: Chapter 43: Managers as Decision Makers
Multiple Choice
1. Identifying and taking action to resolve problems is called __________.
a) problem solving
b) information competency
c) information management
d) inquiring
2. Which of the following terms refers to the ability to gather and use information to solve
problems?
a) Problem solving
b) Information competency
c) Information disbursement
d) Inquiring
Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
6. James is a proactive information gatherer and a forward-thinking manager. He is an example
of a:
a) problem seeker.
b) problem avoider.
c) problem creator.
d) problem solver.
7. Managers who ignore information that would otherwise signal the presence of a performance
threat or opportunity, and who prefer not to make decisions are called:
a) problem seekers.
b) problem avoiders.
c) problem creators.
d) problem solvers.
Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
11. The three different conditions or problem environments in which managers make decisions
are:
a) good, neutral, and bad.
b) certain, risk, and uncertain.
c) absolute, uncertain, and indeterminate.
d) certain, absolute, and risk.
12. A(n) __________ environment, in which managers make decisions, lacks so much
information that it is difficult to assign probabilities to the likely outcome of alternatives.
a) uncertain
b) bad
c) improbable
d) risk
Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
c) certain
d) risk
16. An environment for making decisions in which information is incomplete, yet one can still
reasonably estimate probabilities for the outcomes of various options is called a(n):
a) risk environment.
b) certain environment.
c) uncertain environment.
d) programmed environment.
17. A(n) __________ is a choice among possible alternative courses of action.
a) alternative
b) inquiry
c) guess
d) decision
Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
21. Which of the following factors determines whether a decision is programmed or
nonprogrammed?
a) Whether the problem is new or routine
b) The number of people involved in the outcome
c) The amount of time available
d) The amount of money involved in the solution
22. Which of the following is the first step in the decision-making process?
a) Generating alternatives
b) Evaluating results
c) Defining the problem
d) Making the decision
Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
d) Implementing the decision
26. In the decision-making process, a cost-benefit analysis is used to:
a) evaluate results.
b) define a problem.
c) implement a decision.
d) generate alternative courses of action.
27. Comparing the costs and benefits of each potential course of action is called:
a) evaluation of results.
b) cost-benefit analysis.
c) strategic planning.
d) application of ethics double-check.
Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 13
Ans: a
Bloom’s: Knowledge
Level: Easy
Learning Objective 2: Identify five steps in the decision-making process.
Section Reference: Step 3—Decide on a preferred course of action.
Section Reference: Step 3 is to decide on a preferred course of action.
AACSB: Analytic
31. Which of the following statements is true of the classical decision model?
a) It proposes that managers take optimizing decisions after considering available alternatives.
b) It holds that managers act only in terms of their perceptions, which are frequently imperfect.
c) It takes into account the cognitive limitations that prevent managers from being fully
informed.
d) It addresses the complexities involved in decision making in uncertain and risk environments.
32. While making decisions, Jason selects the alternative that provides the absolute best solution
to a problem. In this scenario, Jason takes a(n) __________ decision.
a) intuitive
b) optimizing
c) carefully implemented
d) satisficing
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 14
33. __________ limitations make it hard for managers to be fully informed and make perfectly
rational decisions in all situations.
a) Intuitive
b) Financial
c) Behavioral
d) Cognitive
34. The __________ decision model describes decision making with limited information and
bounded rationality.
a) participative
b) classical
c) behavioral
d) delegation
35. A decision that chooses the first satisfactory alternative that is presented is called a(n)
__________ decision.
Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
a) optimizing
b) reasonable
c) satisficing
d) classical
36. The classical decision model views managers as attempting to provide __________
decisions.
a) behavioral
b) programmed
c) optimizing
d) satisficing
37. The behavioral decision model views managers as attempting to provide __________
decisions.
a) classical
b) satisficing
c) programmed
d) optimizing
Copyright © 20186 John Wiley & Sons, Inc. TB 43 – 16
38. The fourth step in the decision-making process is to:
a) evaluate results.
b) implement the decision.
c) conduct a cost-benefit analysis.
d) generate alternatives.
39. A lack-of-participation error occurs when:
a) employees do not understand what the management wants them to do.
b) there is a shortage of employees to implement a decision.
c) employees are not capable of implementing a decision.
d) managers fail to include the right people in the decision-making process.
