Recognizing That It May Be in Managers' Best Interests to Be

question 11

Multiple Choice

Recognizing that it may be in managers' best interests to be overly optimistic when proposing projects,how might firms effectively control this impulse?

• A) Employ capital rationing.
• B) Discontinue investment proposals.
• C) Fire managers after their first mistake.
• D) Fund all project proposals.

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Definitions:

Social-cognitive

Pertaining to the understanding of social interactions and processes through cognitive mechanisms, including thoughts, perceptions, and expectations.

Trait

A unique trait or feature, usually associated with an individual.

Psychoanalytic

Pertaining to the theory and therapeutic method developed by Sigmund Freud, focusing on unconscious motivations and conflicts as determinants of behavior.

Past Performance

Refers to the historical achievements or actions of an individual or entity, often analyzed to predict future behavior or outcomes.