Sandy, Gale, and Marylou Are on the Board of Directors

question 20

Multiple Choice

Sandy, Gale, and Marylou are on the board of directors for an area non-profit organization. At a recent meeting, guest David delivered a rousing speech on how group leadership is often too complex and that non-profits could often be better served by a CEO and no board of directors. Sandy emphatically disagreed with David stating that not having the board could open the organization up to massive levels of corruption. Gale agreed with David and feels that maybe the organization might do better if only one of the ladies were in charge, mainly herself. Marylou chose not to comment on the matter, thus leading Sandy to assume that she agreed with her. It could be said that Sandy is suffering from ________.

• A) groupthink
• B) groupshift
• C) group polarization
• D) both A and B
• E) all, A, B, and C

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Definitions:

Marginal Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.

Maximize Profits

The process by which businesses aim to achieve the highest possible profit through revenue maximization and/or cost minimization strategies.

Minimize Losses

Minimize losses refers to strategies or actions taken by businesses and investors to reduce financial losses or the negative impact of less successful investments.

Marginal Cost (MC)

The cost of producing one additional unit of output.