How Do You Know That a Group in Which You're

question 39

Multiple Choice

How do you know that a group in which you're taking part is suffering from groupthink?

• A)Peer pressure makes you agree with the ideas of the other people in your group.
• B)Minority dissent is allowed,even encouraged.
• C)All ideas and conclusions must be backed up with data.
• D)The group would rather take the time to come to the right decision rather than agree too quickly on what may be the wrong decision.
• E)The group actively considers new ideas,even if these ideas challenge underlying assumptions.

Understand and apply the concept of moral hazard and adverse selection in business environments.

Identify the factors affecting the choice between different operational strategies, such as quality differentiation and market signaling.

Critically assess the viability of mergers and acquisitions considering the informational asymmetry and its potential impact on market competition.

Derive optimal strategies for managing and operating multi-plant firms to address asymmetric information problems.