A Family Business Is Considering Making an Investment in Its

question 97

Multiple Choice

A family business is considering making an investment in its manufacturing operation. Three decisions are under consideration: (1) a large investment; (2) a medium investment; and (3) a small investment. The business believes that there are three possible future outcomes for its product: (1) increasing demand; (2) stable demand; and (3) decreasing demand. The following payoff table describes the decision situation: The best decision for the business using the maximax criterion would be to

• A) make the large investment.
• B) make the medium investment.
• C) make the small investment.
• D) choose increasing demand.

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Definitions:

Constructive Criticism

Feedback provided in a way that acknowledges both strengths and areas for improvement, intended to help the recipient grow.

Nonverbal Cues

Forms of communication without the use of spoken language, including gestures, facial expressions, body language, and tone of voice, that can convey messages or emotions.

Feedback

Information provided about reactions to a product, a person's performance of a task, etc., used as a basis for improvement.

Effectively Overcome

To successfully deal with or surmount a challenge, obstacle, or difficulty through efficient and strategic means.