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

question 25

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) Require that all proposals be initiated from the lowest possible management level
• C) Fire managers if any of their proposals fail to produce the expected results
• D) Fund all project proposals

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Definitions:

Outgroup

In cladistics, a taxon that represents an approximation of the ancestral condition; the outgroup is related to the ingroup (the members of the group under study) but separated from the ingroup lineage before they diversified.

Diverges

Moves or extends in different directions from a common point, or becomes fundamentally different in character or form.

Consortium

An association, typically of several business companies, created to undertake a project that is beyond the resources of any one member.

Barcode

A representation of data regarding the object to which it is attached that is readable by machines, typically used for identification and tracking purposes.