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| 1 |  |  Although all managers are decision-makers, not all decision-makers are managers. |
|  | A) | True |
|  | B) | False |
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| 2 |  |  Most business decisions in today's organizations are made under conditions of certainty. |
|  | A) | True |
|  | B) | False |
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| 3 |  |  Creativity refers to doing new things, whereas innovation refers to coming up with a new idea. |
|  | A) | True |
|  | B) | False |
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| 4 |  |  Synectics uses metaphors and analogies to solve problems. |
|  | A) | True |
|  | B) | False |
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| 5 |  |  Payroll, billing, and inventory record systems are examples of transaction-processing systems. |
|  | A) | True |
|  | B) | False |
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| 6 |  |  The process of choosing from among various alternatives refers to: |
|  | A) | problem solving. |
|  | B) | optimizing. |
|  | C) | satisficing. |
|  | D) | decision making. |
|  | E) | brainstorming. |
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| 7 |  |  The design stage of the decision process entails: |
|  | A) | inventing, developing, and analyzing possible courses of action. |
|  | B) | searching the environment for conditions requiring a decision. |
|  | C) | actual selection of a course of action. |
|  | D) | gathering information on various choices. |
|  | E) | creating an MIS system that makes a decision for you. |
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| 8 |  |  __________ decisions are reached by following an established or systematic precedent. |
|  | A) | Programmed |
|  | B) | Nonprogrammed |
|  | C) | Intuitive |
|  | D) | Satisficing |
|  | E) | Brainstorming |
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| 9 |  |  A decision making approach that uses some type of deductive reasoning is called a(n): |
|  | A) | risk-averting approach. |
|  | B) | intuitive approach. |
|  | C) | rational approach. |
|  | D) | irrational approach. |
|  | E) | risk-seeking approach. |
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| 10 |  |  Which of the following is NOT a step in the optimizing approach? |
|  | A) | Recognize the need for a decision. |
|  | B) | Establish, rank, and weigh the decision criteria. |
|  | C) | Gather information. |
|  | D) | Evaluate alternatives. |
|  | E) | Make an educated guess. |
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| 11 |  |  The idea that people have the time and cognitive ability to process only a limited amount of information on which to base decisions refers to: |
|  | A) | the Gordon technique |
|  | B) | nominal group technique. |
|  | C) | the risk-averting approach. |
|  | D) | the optimizing approach. |
|  | E) | the principle of bounded rationality. |
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| 12 |  |  __________ refers to selecting the first alternative that meets the decision maker's minimum standard of satisfaction. |
|  | A) | Optimizing |
|  | B) | Satisfying |
|  | C) | Satisficing |
|  | D) | Risk averting |
|  | E) | Problem solving |
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| 13 |  |  If the weather forecaster says that there is a 40 percent chance of rain, the decision maker is operating in a situation of: |
|  | A) | certainty. |
|  | B) | risk. |
|  | C) | uncertainty. |
|  | D) | maximax. |
|  | E) | no risk. |
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| 14 |  |  Selecting the best possible outcome involves the __________ approach, whereas selecting the least undesirable outcome involves the __________ approach. |
|  | A) | maximin; risk-averting |
|  | B) | risk-averting; maximax |
|  | C) | risk-seeking; maximin |
|  | D) | maximax; maximin |
|  | E) | maximin; maximax |
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| 15 |  |  __________ is a conception, explicit or implicit, defining what an individual or a group regards as desirable. |
|  | A) | A value |
|  | B) | Creativity |
|  | C) | Innovation |
|  | D) | Brainstorming |
|  | E) | A concept |
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| 16 |  |  Which of the following is NOT a barrier to effective decision making? |
|  | A) | Complacency |
|  | B) | Defensive avoidance |
|  | C) | Panic |
|  | D) | Criticism |
|  | E) | Deciding to decide |
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| 17 |  |  The five steps of the creative process are preparation, concentration, incubation of ideas and information, illumination, and: |
|  | A) | instilling trust. |
|  | B) | rewarding. |
|  | C) | being courteous. |
|  | D) | offering criticism. |
|  | E) | verification. |
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| 18 |  |  All of the following are rules for the first phase of brainstorming EXCEPT: |
|  | A) | no criticism is allowed. |
|  | B) | praise of ideas is allowed. |
|  | C) | no questions or discussion of ideas is allowed. |
|  | D) | combinations of ideas are encouraged. |
|  | E) | improvements on ideas are encouraged. |
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| 19 |  |  The nominal group technique involves all of the following steps EXCEPT: |
|  | A) | listing. |
|  | B) | recording. |
|  | C) | discussion. |
|  | D) | voting. |
|  | E) | mentoring. |
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| 20 |  |  Which of the following is NOT one of the six stages of the Model for Creative Decision Making? |
|  | A) | Recognition |
|  | B) | Resource Finding |
|  | C) | Problem Finding |
|  | D) | Idea Finding |
|  | E) | Solution Finding |
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