Which of the Following Describes Group Think

question 11

Multiple Choice

Which of the following describes group think?

• A) A member of a corporate executive committee states, "You could be making a big mistake."
• B) Members of a corporate executive committee fail to inform the chairperson that some middle managers do not support the decision.
• C) A corporate executive committee cancels a press conference in light of poor market survey results.
• D) Members demonstrate a willingness to take interpersonal risks

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Definitions:

Real Option

The right, but not the obligation, to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a project at a future date.

Capital Budgeting

The process of analyzing and ranking potential expenditures or investments that are significant in amount, to determine which projects will provide the best return.

Assigned Value

A valuation determined for an asset or liability, often used in accounting to assign costs or values.

Risk Adjusted NPV

Net Present Value method adjusted for the risk associated with the uncertain cash flows, taking into account the variability of returns and the cost of capital.