When a Creative Solution Is Needed and Commitment to the Solution

question 32

Multiple Choice

When a creative solution is needed and commitment to the solution is vital to implementation, which of these is the ideal approach to managing conflict?

• A) Avoidance.
• B) Smoothing.
• C) Accommodation.
• D) Compromise.
• E) Collaboration.

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Definitions:

Fixed Costs

Expenses that do not change with the amount of goods or services produced by a business.

Sunk Costs

Sunk costs refer to expenses that have already been incurred and cannot be recovered, and therefore should not affect future business decisions.

Opportunity Costs

The missed opportunity to benefit from different options when a single choice is made.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.