If Managers Believe That Their Abilities Can Reduce the Risks

question 74

Multiple Choice

If managers believe that their abilities can reduce the risks inherent in decision making to a much greater extent that they actually can, they might demonstrate ______ and trust only their own judgment rather than conduct sufficient analysis.

• A)agency problems
• B)the illusion of control
• C)managerial conceit
• D)escalation of commitment

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Definitions:

Psychological

Pertaining to the mind or mental processes, often involving emotional and behavioral aspects of individuals.

Social

Relating to society or its organization, or the interaction and communication among people within a community or group.

Legal

Pertaining to the system of rules and guidelines that govern behavior and practices within a society.

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer; also known as a secondary reinforcer.