If Managers Believe That Their Abilities Can Reduce the Risks

question 14

Multiple Choice

If managers believe that their abilities can reduce the risks inherent in decision making to a much greater extent that they actually can,they might demonstrate ________ and trust only their own judgment rather than conduct sufficient analysis.

• A) agency problems
• B) reasoning by analogy
• C) managerial conceit
• D) escalation of commitment

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Definitions:

Rubber-Hand Illusion

A psychological experiment that demonstrates how sensory and visual cues can lead to a false perception of body ownership.

Sensory Interaction

The process by which multiple senses, such as sight and sound, work together to give a more comprehensive understanding of the environment.

Kinesthesis

refers to the sense that detects body position, movement, and balance, primarily through receptors in the muscles and joints.

Olfaction

The sense of smell, a chemical sensing system for detecting and identifying scents in the environment.