Which of the Following Statements Is True

question 184

Multiple Choice

Which of the following statements is true?

• A) The more information a manager has, the more risk there is when making a decision.
• B) The more information a manager has, the less risk there is when making a decision.
• C) Risk improves decision making.
• D) Most managers make decisions without any information.
• E) When the amount of information is low, there is less risk.

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Definitions:

Court Order

An official proclamation issued by a judge that requires a person or entity to do or cease doing a specific action.

Property Rights

Legal rights to possess, use, and dispose of assets including tangible and intangible property.

Negative Externality

A cost that affects a third party who did not choose to incur that cost, often associated with pollution or public health issues.

Ronald Coase

A British economist known for his work on transaction costs, property rights, and the theory of the firm.