In Business Decision-Making, Managers Typically Examine the Two Fundamental Factors

question 6

Multiple Choice

In business decision-making, managers typically examine the two fundamental factors of:

• A) Risk and capital investment.
• B) Risk and rate of return.
• C) Capital investment and rate of return.
• D) Risk and payback.
• E) Payback and rate of return.

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Definitions:

Hypothetical Thought

Reasoning that includes propositions and possibilities that may not reflect reality.

Analytic Thought

Thought that results from analysis, such as a systematic ranking of pros and cons, risks and consequences, possibilities and facts. Analytic thought depends on logic and rationality.

Intuitive Thought

Thought that arises from an emotion or a hunch beyond rational explanation, and is influenced by past experiences and cultural assumptions.

Egocentrism

Piaget’s term for children’s tendency to think about the world entirely from their own personal perspective.