Which of the Following Statements About Decision Making in a Crisis

question 54

Multiple Choice

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

• A) In crises, managers should make decisions only after taking all of the details into account.
• B) Crisis management can be best handled as the crisis occurs.
• C) Early warning signals of crisis are unavailable, so bounded rationality must be used.
• D) An effective plan for crisis management is essential to include on the management agenda.
• E) Crises can never provide benefits to a company.

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Definitions:

Preexisting Duty

A legal principle that states a promise to do something that one is already legally obligated to do is not sufficient consideration for a new contract.

Unilateral Contract

A promise made by one party in exchange for the performance of a task or action by another party.

Past Consideration

A benefit already provided or an action already performed, which cannot legally constitute consideration for a current contract.

Consideration

A value that is exchanged between parties in a contract, making the agreement legally binding.