Which of the Following Statements About Decision Making in a Crisis

question 30

Multiple Choice

Which of the following statements about decision making in a crisis is true?

• A)In crises,managers should make decisions after taking all of the details into account so the decision they make is the correct one.
• B)Crisis management can be best handled as the crisis occurs.
• C)Unfortunately tracking systems for early warning signals of a crisis are not available so decisions must be made using bounded rationality.
• D)An effective plan for crisis management is essential for the management agenda.
• E)Crises can never provide benefits to a company.

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Definitions:

Market Price

The prevailing market rate at which one can purchase or sell an asset or service.

Common Stock

Equity investments that represent ownership in a company and typically grant voting rights to shareholders.

Conversion

The process of changing or converting resources into finished goods or services, often used in accounting and manufacturing to describe the transformation of raw materials into products.

Gains Or Losses

The financial result from selling assets for more or less than their carrying amount on the balance sheet.