When a Decision Is Made in an Organization, It Is

question 43

Multiple Choice

When a decision is made in an organization, it is selected from a group of alternative courses of action (i.e., decision alternatives) . The loss associated with not choosing a given decision alternative is referred to as a(n) :

• A) Sunk cost.
• B) Discretionary.
• C) Opportunity cost.
• D) Committed cost.
• E) Outlay cost.

---

Definitions:

Bretton Woods Agreement

An agreement established in 1944 that set up international financial institutions including the International Monetary Fund (IMF) and the World Bank, and established rules for commercial and financial relations among the world's major industrial states.

Devaluation

A deliberate downward adjustment to the value of a country's currency relative to another currency, group of currencies, or standard.

Fixed Exchange Rate

A system where the value of a currency is pegged at a set value against another currency or a basket of currencies.

Floating Exchange Rate

A currency's value that is determined by the foreign exchange market depending on supply and demand relative to other currencies, rather than a fixed value set by a government.