_________ Is the Process That Managers Use to Deal with Opportunities

question 59

Multiple Choice

_________ is the process that managers use to deal with opportunities and threats by analyzing the options and making determinations, or decisions, about specific organizational goals and courses of actions.

• A)Groupthink
• B)Intuition
• C)Decision making
• D)Bounded rationality
• E)Heuristics

---

Definitions:

Cost Of Capital

The cost of funds used for financing a business, expressed as the rate of return that investors expect from the capital invested in the business.

Output Effect

The impact on the overall production or output of a firm or economy resulting from a change in demand or other economic variables.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods or services, leading consumers to replace more expensive items with cheaper alternatives.

Profit-Maximizing Firm

A company that operates with the primary goal of maximizing its profits by adjusting output and pricing.