A Manager of a Shipping Department Was Concerned About an Order

question 55

Multiple Choice

A manager of a shipping department was concerned about an order that a customer reported as several weeks late. To define the problem, the manager asked an employee in the shipping department why the order had not arrived. The employee said, "Someone probably made a mistake on the address. That would be my guess." Thus, the manager asked the employee to reship the order. What characteristic of good problem definition is most violated by this manager?

• A) The problem factual information should be differentiated from opinion or speculation.
• B) The problem should be stated explicitly.
• C) The problem definition should be different than a disguised solution.
• D) The problem definition should be written down.

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Definitions:

Directors

Individuals elected by shareholders to manage and oversee the affairs of a corporation, forming its board.

Inside Information

Material, nonpublic, factual data that can be used to buy or sell securities at a profit.

Nonpublic

Information or entities not available or accessible to the general public, often pertaining to private or confidential matters.

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith and believed to be in the best interest of the company.