If Managers Believe That Their Abilities Can Reduce the Risks

question 14

Multiple Choice

If managers believe that their abilities can reduce the risks inherent in decision making to a much greater extent that they actually can,they might demonstrate ________ and trust only their own judgment rather than conduct sufficient analysis.

• A) agency problems
• B) reasoning by analogy
• C) managerial conceit
• D) escalation of commitment

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Definitions:

Special Rules

Specific regulations or guidelines designed to address particular scenarios or areas within a broader regulatory framework.

Acceleration

A provision in a contract that allows a lender to demand immediate payment of the entire outstanding balance if certain conditions are not met.

Payment

The transfer of money or its equivalent in exchange for goods, services, or to settle a debt.

Time Certain

A specific point in time agreed upon at which an event must occur or a condition must be met.