Researchers Have Concluded That Entrepreneurs, with a Certain Degree of Regularity

question 8

Multiple Choice

Researchers have concluded that entrepreneurs, with a certain degree of regularity, make a number of misjudgments and irrational decisions due to letting their thinking be steered by a variety of prejudices and biased reasoning. Some of these mentioned in the book include:

• A) affect (one's feelings gain the upper hand)
• B) ignorance of facts (misinterpretation or disregard of pertinent facts)
• C) joy of optimism (acts according to how one wishes it was in reality)
• D) hubris (overestimation of one's ability)
• E) lure of little numbers (not taking a realistic approach to costs)
• F) magic of big numbers (grossly over-exaggerating positive facts and figures)
• G)time optimism (systematically underestimating the time tasks require)
• H)overgeneralization (judging reality on the basis of a few observations)

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Definitions:

Fait Accompli

A situation or action that has already been completed and is irreversible, often presented to others as an accomplished event.

Bargaining Range

The spectrum of possible agreements in a negotiation process, bounded by the least favorable terms acceptable to each party.

Opening Stance

The initial position or attitude taken by a party at the beginning of a negotiation or discussion.

Counteroffer

A proposal made in response to an initial offer, suggesting different terms or conditions.