Fairco,a Family Business,is Considering Making an Investment in Its Manufacturing

question 31

Multiple Choice

Fairco,a family business,is considering making an investment in its manufacturing operation.Three decisions are under consideration: (1) a large investment; (2) a medium investment;and (3) a small investment.The business believes that there are three possible future outcomes for its product: (1) increasing demand; (2) stable demand;and (3) decreasing demand.The following payoff table describes the decision situation. The best decision for Fairco using the maximin criterion would be to

• A)make the large investment.
• B)make the medium investment.
• C)make the small investment.
• D)choose stable demand.

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Definitions:

Social networks

Structures made up of individuals or organizations that are connected by one or more types of interdependency, such as friendships, kinships, common interests, or economic exchanges.

Indirect ties

Connections in a social network that link individuals through intermediaries rather than through direct personal relationships.

Influence them

The action or process of affecting someone's character, development, or behavior without using direct force or command.

Shared identity

A sense of belonging to a group where members perceive themselves as having key aspects of their identity in common.