The Tendency for a Group Decision to Be Riskier Than

question 34

Multiple Choice

The tendency for a group decision to be riskier than the average decision made by the individual group members is known as

• A)risk hedging.
• B)social loafing.
• C)risky shift.
• D)group polarization.

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Definitions:

Production Levels

The quantity of goods or services produced by a company during a specific period, influenced by demand, capacity, and resource availability.

Responsibility Centre

A unit within an organization under the management's control, accountable for specific activities and associated costs, revenues, or investments.

Investment Centre

A business unit or segment which is responsible for its own revenues, expenses, and assets, and whose performance is measured by its return on investment.

Profit Centre

A profit centre is a distinct business unit or department within an organization that is responsible for generating its own revenue and managing its own costs to drive profitability.