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:

Product Liability Laws

Regulations that hold manufacturers, distributors, suppliers, and retailers responsible for injuries caused by defective products.

All-Terrain Vehicle

A motorized off-road vehicle designed to travel on four tires and handle a wide variety of terrain.

Off-Road Inc.

A fictional name that suggests a company specializing in products or services related to off-road activities or vehicles.

Design Defect

A flaw or error in the planning or engineering of a product that makes it unsafe or fails to perform its intended purpose.