This Payoff Matrix Gives Potential Dollar Gain Values in Thousands

question 76

Multiple Choice

This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza. If Sam chooses S1, how is he feeling about the business climate?

• A) Sam is feeling pessimistic because he has chosen a maximax strategy.
• B) Sam is feeling optimistic because he has chosen a maximin strategy.
• C) Sam is feeling neither pessimistic nor optimistic because he has chosen neither a maximin nor a maximax strategy.
• D) Sam is feeling both pessimistic and optimistic because he has chosen both a maximin and a maximax strategy.

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Definitions:

Ethical Climates

The prevailing beliefs, values, and norms in an organization that influence ethical decision-making and behaviors.

Core Value

A fundamental belief or principle that is considered inherently important to an organization's identity and guides its actions and decisions.

Business Ethics

The study and analysis of proper business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities.

Business Ethics

The study and examination of moral and ethical principles and problems that arise in a business environment.