Decision-Making Biases (Scenario) Frank Is President of Mega Manufacturing, a Canadian Company That

question 112

Multiple Choice

Decision-making Biases (Scenario)
Frank is president of Mega Manufacturing, a Canadian company that makes automobile parts. Sales and profits are down sharply this quarter, and Frank needs to analyze the series of events that have led to the poor performance. Frank begins by reviewing his recent interactions with Mike, the vice-president of sales.
-Unfortunately,Frank learned yesterday that the Japanese car maker decided to award the contract to a competing auto parts company.When Frank asked Mike why they lost the sale,Mike blamed it on the high Canadian dollar and the rise in cheap offshore auto parts suppliers.Mike is demonstrating which of the following?

• A)confirmation bias
• B)self-serving bias
• C)overconfidence bias
• D)framing bias

Describe achievement goal theory and the pursuit of approach versus avoidance goals.

Explain the phenomenon of self-fulfilling prophecy and its implications in educational settings.

Understand Festinger's social comparison theory, including upward and downward comparisons.

Understand the misconceptions and knowledge gaps between senior management and lower-level employees regarding organizational awareness.

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Definitions:

Residual Income

The amount of income that an investment or project generates above the minimum rate of return.

Residual Income

The profit left over after all necessary capital expenses are subtracted from the operating income, serving as an indicator of financial success.

Operating Assets

Resources used in the day-to-day functioning of a business that contribute to generating revenue.

Residual Income

The amount of income that exceeds the minimum return expected from a particular investment or operation.