Even Good Managers Will Make Mistakes That Are Caused by Bias

question 61

Essay

Even good managers will make mistakes that are caused by bias. Bias is a partial perspective that clouds good judgment. In a short essay, define the six biases that can cause a manager to make bad decisions. Then, describe a situation that is public knowledge where bias was reflected in the manager's decision-making process.

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Definitions:

Accounts Receivable

Debts that customers have towards a business for items or services received but payment is outstanding.

Interest Calculation

The process of determining the interest charge on a loan or financial investment, based on the principal amount, rate, and time.

Maturity Date

The specific date on which the principal amount of a debt instrument, such as a bond or loan, becomes due and payable.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total accounts receivable balance to reflect accounts that are expected not to be collected.