1) Decision opportunities arise when problems or opportunities are recognized through critical thinking. Which of the following components may be a reason that managers ignore problems? A. A lack of intellectual empathy makes it difficult to recognize stakeholder considerations. B. The manager’s sense of urgency toward problems precludes action. C. The manager prefers risk over certainty. D. Some businesses exist in a problem free environment. E. The manager is exercising intellectual courage in the face of resistance to problem solving.

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1) Decision opportunities arise when problems or opportunities are recognized
through critical thinking. Which of the following components may be a reason
that managers ignore problems?
A. A lack of intellectual empathy makes it difficult to recognize stakeholder
considerations.
B. The manager’s sense of urgency toward problems precludes action.
C. The manager prefers risk over certainty.
D. Some businesses exist in a problem free environment.
E. The manager is exercising intellectual courage in the face of resistance
to problem solving.
2) Bill Simmons is the manager of a small restaurant and must decide how much
money he owes his suppliers. The best way for Bill to approach this as a critical
thinker is to

2. A. collect and analyze the evidence
B. identify opportunities and obstacles
C. understand different perspectives on the issue
D. weigh the consequences of this decision
3) Decision tools and techniques influence the use of critical thinking in decision
making. According to the decision steps model, what is a proper response when
an unstructured problem is presented?
A. Implement a decision
B. Measure the impact of a decision
C. Frame the problem
D. Frame alternatives
E. Make the decision
4) When faced with a decision opportunity, a critical thinker must sort through a
variety of readily apparent symptoms in order to focus on important
considerations that may be hidden. Based on the decision steps model, when
framing a problem a helpful step is to
A. determine root causes

3. B. identify the problem
C. frame alternatives
D. develop a contingency plan
E. measure the decision
5) Jane has a term paper due, a sick child who needs her attention, and a major
project due at work. To save time, she decides to submit a paper for school that is
less than her best, but will earn a passing grade. The best description of Jane’s
approach is
A. optimizing
B. satisficing
C. creativity
D. analyzing
6) Despite all the measures followed, successful decisions are not always
guaranteed so it is important to
A. develop appropriate measurements for the impacts of decisions
B. accept that some decisions will not work and move on to other issues
C. develop contingency plans

4. D. only allow the most senior leaders to influence decisions
E. use logical thinking to guarantee a correct outcome
7) Tactics for increasing the diversity of opinion brought to bear on a decision
include
A. brainstorming
B. following the chain of command
C. reliance on precedent
D. an autocratic decision process
E. reference to the policy manual
8) Critical thought involves the consideration of diverse perspectives. Advantages
of this include
A. quicker decisions for urgent problems
B. decisions that are more narrowly focused
C. the leader maintains tighter control over decisions
D. a decision that accounts for the interests of multiple stakeholders
E. greater security over confidential information

5. 9) Critical thought involves the consideration of diverse perspectives.
Disadvantages of group decision making include
A. increased security of confidential information
B. all of the above are disadvantages of group decision making
C. a process that is more time consuming
D. a decision that accounts for the interests of diverse stakeholders
E. a more autocratic environment
10) Considerations when framing a problem include
A. developing contingency plans
B. measuring the impacts of a decision
C. identifying causes of the problem
D. framing alternative courses of action
E. identification of stakeholders affected by the problem
11) Conflict is a force of influence upon decision making, and may hamper
decision implementation if not accounted for in the problem formulation and
identification process. Conflict may stem from such factors as

6. A. personal attributes
B. a lack of a devil’s advocate
C. groupthink
D. inspirational leadership
E. routine programmed decisions
12) During problem formulation, the decision maker must account for the
interests of diverse stakeholders. An important step toward this outcome is the
establishment of
A. timelines and resource allocations
B. contingency plans
C. criteria, goals, and objectives
D. measurements for the decision
E. decision Implementation Processes
13) A valid deductive argument may lead to false conclusions if
A. it contains a false premise

7. B. a valid deductive argument cannot lead to false conclusions
C. it is in improper form
D. it uses the modens ponens argument form
E. it is composed of multiple syllogisms
14) A form of critical thinking is fair-minded persuasive thinking. When engaging
in problem formulation and identification with a group, the fair minded persuader
would
A. communicate only that information which supports the desired decision
B. acknowledges the difficulty that his or her position creates for the
audience
C. avoid all affective appeals
D. emphasize data and reason over affective appeals
E. emphasizes affective appeals over data and reason
15) What is the most comprehensive definition of a problem?
A. Gap between current situation and some future desired state
B. A declining economy resulting in reduced revenues
C. A negative situation that requires action to mitigate damage

8. D. An increase in the cost of doing business.
E. A positive situation that requires action in order to fully leverage an
opportunity.
16) Problems may become apparent to stakeholders through the use of tools
which compare actual results to expected results. An example of such a tool is a
A. Financial report
B. Fishbone diagram
C. Pareto chart
D. Force Field Analysis
E. SWOT analysis
17) An important step toward framing a problem in a manner that is sensitive to
relevant stakeholder perspectives is to
A. filter non-financial input from the process
B. use projection when ascribing motivation to others
C. determine who is affected by a problem
D. be sure to remain situated in one’s personal context
E. do not allow public relations concerns to influence decision making

9. 18) While this decision style offers an opportunity for stakeholder input, it most
lessens accountability for decision making.
A. Collaborative/participative
B. Consensus
C. Autocratic
D. Leader decides
E. Democratic
19) Jan is the owner of a retail store, and is evaluating the need for changes to the
store’s commission structure for sales personnel. She has decided to exclude the
sales personnel affected from the decision making process. Jan is probably
seeking to minimize this force of influence on the decision making process.
A. Resource availability
B. Lack of political support
C. Self serving bias
D. Ethical considerations
E. Resistance from external stakeholders

10. 20) Identifying programmed decision opportunities—problems with objectively
correct answers, solvable through the use of simple rules, policies, or numerical
computations—promises this benefit in terms of decision making.
A. Greater efficiency
B. Provides senior managers with greater visibility to each routine decision
made
C. Provides decision makers with opportunities for creative problem
solving
D. Ensures that multiple solutions are applied to common problems in
order to find the best one
E. Ensures that problems are dealt with in a unique fashion according to
their differences
21) A manager may properly choose to ignore a problem
A. when a Pareto chart has properly clarified the causes of a problem
B. when the costs of doing nothing are less than the cost of addressing the
problem
C. when a SWOT analysis indicates an environmental opportunity
D. because of a bias against change
E. when the problem is surfaced through a positive trigger point

11. 22) Managers of Shadow Blinds are contemplating whether to open the
company's first international branch in Europe or Asia. A decision tool that would
facilitate the decision between these two locations by analyzing the relative
strength of cross cultural factors is a
A. SPC chart
B. Force Field Analysis
C. Scatter diagram
D. Gantt chart
E. Pareto chart
23) A decision tool that can be helpful in identifying risks to contemplated
decisions is
A. a Fishbone diagram
B. a Pareto chart
C. a periodic table
D. a histogram
E. a Force Field Analysis

12. 24) For urgent decisions, this approach may be the most efficient and effective
use of the manager’s time when there are other critical competing priorities.
A. Creation of a task force
B. Satisficing
C. Brainstorming and multi-voting with a team
D. Optimizing
E. Experimenting
25) In the course of developing a SWOT analysis, Bob determines that a large
competitor is moving into one of his company’s key service areas. Bob has
uncovered
A. a strength
B. a positive trigger point
C. an opportunity
D. a threat
E. a weakness
26) The manager of the Gallery Restaurant noted that the restaurant had
experienced a decrease in the number of evening customers. The manager

13. promptly ordered the chef to rewrite the evening menu. Customer feedback later
indicated that the problem had not been the menu but poor service from the wait
staff. The manager's decision to have the menu revised suggests that she failed to
A. evaluate the decision and its consequences
B. identify the problem
C. properly diagnose the cause of the problem
D. evaluate the alternatives and consequences
27) The initial step in framing the problem is to ______, and the first step in
making the decision is to ______.
A. identify the problem, frame alternatives
B. identify the problem, identify causes of the problem
C. identify the cause of the problem, implement the decision
D. evaluate the decision, determine who is affected
E. select an alternative, identify the problem
28) In response to declining profits, a company decides that it needs to become
world class, but is having difficulty developing an implementation plan around the

14. goal of “becoming world class.” Rather than implement this decision, the
company would be well advised to return to the ______ step of decision making.
A. evaluate the decision
B. make the decision
C. determine measurements
D. frame alternatives
E. develop criteria, goals, and objectives
29) Jan has been selected to implement her company’s decision to expand her
company’s manufacturing operation into a new location. Six months into this
project, the building has been completed, and machinery installed. However, Jan
has been unable to secure enough applicants with the technical skills needed to
operate this computerized facility. Jan’s implementation plan was most deficient
in its consideration of
A. organizational standards
B. resource availability
C. organizational mission
D. technological constraints
E. timeline

15. 30) Freda is in the process of implementing a significant decision. Which of the
following considerations should she ignore?
A. Stakeholder resistance to certain options
B. Measurements of potential tasks
C. Decision alternatives to be framed
D. Timelines to implement the decision
31) Freda is analyzing the prospects for a new gambling casino that her company
is considering. In the course of her analysis, Freda has identified potential
stakeholder resistance to this venture, in that she has discovered that the areas is
very densely populated with houses of worship. She has also discovered a
potential source of support for this venture, in that the local government has
established tax credits for new businesses in an effort to stimulate employment.
Freda is, in all likelihood, developing a
A. Scatter diagram
B. ROI analysis
C. financial proforma income statement
D. Force Field Analysis
E. resource allocation survey

16. 32) Resistance to change during implementation could be a result of
A. The manager’s decision to allow discussion of both internal and
external stakeholder concerns, which introduced conflicting objectives into the
problem formulation and identification process
B. sensitivity to the needs of external stakeholders
C. a decision that has been delayed by a lengthy
collaborative/participative decision making style
D. a problem statement that is not representative of relevant stakeholder
interests
33) The assignment of different tasks to different people or groups is an
important part of a(n)
A. statistical process control chart
B. benchmarking project
C. Force Field Analysis
D. implementation plan
E. strategic plan
34) Bill is an automotive mechanic, paid on the basis of the repair dollars that he
generates for his employer. A customer has informed Bill that he believes he

17. needs major repair work to his automobile. Upon examination of the car, Bill
discovers that an inexpensive adjustment is all that is needed. He knows that if he
informs the customer of this, he will miss out on the substantial commission he
would earn by performing the work that the customer already expects. The
compensation structure employed by Bill’s garage has created the ethical
dilemma of
A. impartial third party mediator
B. proper allocation of resources
C. a conflict of interest
D. the good of the individual vs the good of society
E. joint and several liability dilemma
35) Susan has the opportunity to choose among several options, including going
along with her coworkers and filling out inaccurate time records, telling her
manager what is happening, attempting to persuade her coworkers to stop doing
this, or, doing nothing. This is an example of
A. a situation that is not a problem
B. an ethical issue
C. a time when Susan should ignore the problem
D. a moral rights issue

18. 36) A situation, problem, or opportunity in which an individual must choose
among several actions that must be evaluated as morally right or wrong is called
A. a personal issue
B. an ethical issue
C. business ethics
D. morale issue
37) A measurement that identifies the degree to which goals and objectives are
obtained is a measure of
A. organizational fluctuation
B. organizational efficiency
C. organizational precision
D. organizational effectiveness
E. organizational stability
38) In order to develop meaningful measurements to guide decision
implementation and evaluation, it is important to develop ______ when framing a
problem.

19. A. a thorough SWOT analysis
B. specific task responsibilities for each member of the team
C. specific criteria, goals and objectives
D. multiple alternative courses of action
E. relevant job descriptions
39) The best way to ensure that a “balanced scorecard” is used to evaluate the
success of a decision is to
A. ensure that the finance department develops the list of measurements
to be applied
B. compare actual financial results to budgeted amounts
C. gather and compile regular feedback from internal and external
stakeholders
D. monitor resource usage
E. monitor the company’s stock price
40) When evaluating the decision processes in an organization, leaders should
consider doing which of the following?

20. A. Make sure the process is sufficiently autocratic.Make sure the process is
sufficiently autocratic.Make sure the process is sufficiently autocratic.
B. Ensure that the process is consistent for all significant decisions.
C. Make sure to focus on results of the decision rather than the process.
D. Make a list of those affected by the decision, and determine if those
interests are represented in the process under consideration.
E. Ensure that all of a company’s stakeholders provide input all of a
company’s decisions.
41) In order to apply continuous improvement in decision making, a company
should take the time to record not only the results of its decisions, but also the
A. impact to employees
B. impact to external stakeholders
C. customer satisfaction data
D. financial results
E. process through which the decision was made
42) As noted in our texts, a key measurement of our decisions is: “are they
ethical.” In order to achieve a superior level of ethical behavior in its decision
making processes, leaders should instill a(n) ______ in those charged with making
decisions.

21. A. utilitarian approach to ethical considerations
B. compliance based approach to ethical considerations
C. legal approach to ethical considerations
D. integrity based approach to ethical considerations