Refer to the Scenario Below to Answer the Following Questions

question 40

Multiple Choice

Refer to the scenario below to answer the following questions.
Management Decisions : Declining Income (Scenario)
Net income has fallen for the second consecutive quarter, and Amanda is understandably worried. She knows there will be a lot of questions for her at the board of directors meeting Wednesday, and she will be expected to reveal her plan to avoid any third-quarter losses. Amanda begins to analyze the company's financial reports to try to determine the cause of the loss. After much consideration, it appears that expenses have risen dramatically over the last few months. Amanda wonders why. She decides a meeting of the department heads is in order first thing tomorrow morning. At the meeting, Amanda would like to generate several possible solutions to the increased expenses. She wonders how to effectively explore all the options. Next morning, the first option presented at the meeting is to downsize the research and development department, since it is not essential to current operations. Several managers believe the plan will help stem the losses and immediately move to approve it. However, Amanda suggests that they need to look further at the issue and explore other potential solutions. Several suggestions are made, many of which appear to be viable. Amanda wonders what to do next.
-When several managers move to approve the plan to downsize the research and development department without first exploring other options, they are engaging in a type of decision-making called __________.

• A) maximizing
• B) optimizing
• C) rationalizing
• D) minimizing
• E) satisficing

Recognize the influences on rational choice theory from various fields.

Explain how opportunity costs and resource scarcity shape actions within rational choice theory.

Identify the differences between various social theories, including rational choice theory, exchange theory, and network theory.

Describe George Homans' propositions related to rational choice and exchange theories.

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Definitions:

Salad Bowl

A metaphor for a society where multiple cultures coexist while maintaining their individuality, unlike the melting pot where cultures blend into a homogenous whole.

Pluralism

A cultural pattern of intergroup relations that encourages racial and ethnic variation and acceptance within a society.

Multiculturalism

A policy that values diverse racial, ethnic, national, and linguistic backgrounds and so encourages the retention of cultural differences within the larger society.

Syrian Civil War

An ongoing armed conflict in Syria, starting in 2011, involving various factions including the Syrian government, opposition groups, and foreign powers.