Tracy and Tonya's Business Has Enjoyed Enormous Growth, and They

question 59

Multiple Choice

Tracy and Tonya's business has enjoyed enormous growth, and they are not sure how to handle the growing list of back orders, so they sit down together to figure out what they should do. First they list the important criteria involved, then they write down all possible solutions. Having done so, they evaluate these alternatives against the criteria they have established, and after a great deal of discussion, they choose an alternative that they believe will yield the best results. Lastly, having made a decision, they set out to implement it. This is an example of

• A) knowledge transfer.
• B) bounded rationality.
• C) communities of practice.
• D) performance-prove orientation.
• E) the rational decision-making model.

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Definitions:

Deep Depression

An extended period of significant decline in the economy, characterized by high unemployment, sharp decreases in output and trade, and widespread poverty.

Capacity Utilization Rate

A measure of how well an economy or a firm is using its productive capacity to manufacture goods or services.

Unemployment Rate

A gauge of the share of individuals in the labor pool who are not employed but are actively seeking a job.

Economy Operated

Refers to the manner in which a nation’s economic systems and policies are managed and function to produce goods and services.