Decisions That Are Made by Committee Tend to Be Less

question 88

Multiple Choice

Decisions that are made by committee tend to be less than optimal. This is mostly because such decisions ____.

• A)are usually based on limited information
• B)are usually made under tight time pressure
• C)are usually made under stressful circumstances
• D)do not have the benefit of a strong, directive leader

---

Definitions:

Effective Interest Rate

The real rate of interest earned or paid on an investment, loan, or other financial product, taking into account the effects of compounding.

Bank Loan

Money lent to an individual or business by a bank, typically requiring repayment with interest.

Interest Charged

The cost incurred for borrowing money, typically expressed as an annual percentage rate of the principal.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, reflecting the interest payable on any type of debt.