A friend of yours recommends a stock based upon a “hot tip.” You purchase it, and it
subsequently declines the following year. Your friend advises you to purchase more at
the lower price, despite clear evidence that this is not a sound company. Which of the
following cognitive biases is being displayed by your friend?
A) projection
B) cognitive dissonance
C) escalation of commitment
D) frequency
Which of the following is an example of organizational learning that involves
exploration?
A) a supplier implements a TQM program
B) a steel mill refines its production processes
C) an automobile manufacturer enters into a strategic alliance
D) a software services company modifies its existing leave policy
In which of the following situation, servicing the needs of new kinds of customer
groups and tailoring products to suit them are is most likely to be relatively difficult?
A) the organization operates in a rich environment
B) the organization uses functional structure