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:

Inhelder and Piaget

Swiss developmental psychologists Barbel Inhelder and Jean Piaget, known for their work on cognitive development and stages of child development.

Chemicals

Substances with a distinct molecular composition that are used in or produced by chemical processes.

Systematic

Refers to a method or process being carried out using a fixed plan or system, in a thorough and organized manner.

Formal Operational Thinking

The stage in Jean Piaget's theory of cognitive development where individuals gain the ability to think abstractly, logically, and systematically.