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1. The process of choosing one alternative from among a set of alternatives is called _____.
a. rational ignorance
b. altruism
c. bounded rationality
d. decision making
e. groupthink
ANSWER: d
RATIONALE: Decision making is the act of choosing one alternative from among a set of alternatives.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 100
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom's: Knowledge
NOTES: Digital Story: Engage
3. Ryan, the production manager at the Tan Shoes Company, chose the cheapest leather-cutting machine from a set of five
machines from different manufacturers. Ryan was engaged in _____.
a. decision making
b. optimizing
c. rationalizing
d. brainstorming
e. social loafing
ANSWER: a
RATIONALE: This scenario illustrates decision making. Decision making is the act of choosing one
alternative from among a set of alternatives.
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 100
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Application
NOTES: Digital Story: Perform
4. Which of the following statements is true about the process of decision making?
a. It ends when the decision situation has been defined.
b. It includes putting the chosen alternative to practice.
c. The first step in the process is to identify alternatives to a problem.
d. The process is said to be complete when a set of alternatives to a problem has been created.
e. In a business scenario, the decision-making process is always aimed at finding a way to increase profits.
ANSWER: b
RATIONALE: The decision-making process includes recognizing and defining the nature of a decision
situation, identifying alternatives, choosing the “best” alternative, and putting it into practice.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 100
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Comprehension
NOTES: Digital Story: Connect
5. A(n) _____ decision is a decision that is relatively structured or recurs with some frequency (or both).
a. custom-made
b. novel
c. unstructured
d. intuitive
e. programmed
ANSWER: e
RATIONALE: A programmed decision is a decision that is relatively structured or recurs with some
frequency (or both).
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 101
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Knowledge
NOTES: Digital Story: Engage
6. Decisions regarding standard organizational transactions are most likely to be _____ decisions.
a. unstructured
b. infrequent
c. programmed
d. intuitive
e. irrational
ANSWER: c
RATIONALE: Many decisions regarding basic operating systems and procedures and standard
organizational transactions are programmed decisions.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 101
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Knowledge
NOTES: Digital Story: Engage
7. Nutrimax Inc. sponsors a football championship in Oriel in August every year. The championship is organized by the
Oriel Football Association (OFA) to encourage new talent, and Nutrimax bears all the expenses incurred during the
championship. The Oriel regional manager of Nutrimax sends across a check to the OFA in July of each year in order for
them to prepare for the championship. The regional manager’s decision about when to send the check to OFA is a(n)
_____ decision.
a. programmed decision
b. unstructured decision
c. intuitive decision
d. contingency decision
e. satisficing decision
ANSWER: a
RATIONALE: The regional manager is making a programmed decision in this scenario. A programmed
decision is a decision that is relatively structured or recurs with some frequency (or both).
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 101
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Application
NOTES: Digital Story: Perform
8. When the inventory manager of Cuisine Royale, a restaurant, decides to order a batch of brown bread because the stock
is almost empty, she's making a(n) _____ decision.
a. programmed
b. unstructured
c. intuitive
d. irrational
e. strategic
ANSWER: a
RATIONALE: A programmed decision is a decision that is relatively structured or recurs with some
frequency (or both).
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: p. 101
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom's: Application
NOTES: Digital Story: Perform
9. A nonprogrammed decision:
a. is relatively more frequent that programmed decisions.
b. is highly structured.
c. requires more time and resources than programmed decisions.
d. is typically regarding daily organizational transactions.
e. typically applies to basic operating systems and procedures.
ANSWER: c
RATIONALE: A nonprogrammed decision is a decision that is relatively unstructured and occurs less
frequently than a programmed decision. Managers faced with such decisions must treat each
one as unique, investing enormous amounts of time, energy, and resources into exploring the
situation from all perspectives.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 101
LEARNING OBJECTIVES: LO: MGMT.GRIF.16. 4-1 - 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Knowledge
NOTES: Digital Story: Engage
10. Decisions made by top managers involving strategy, such as signing mergers or making acquisitions, are examples of
_____ decisions.
a. frequent
b. nonprogrammed
c. structured
d. operational
e. programmed
ANSWER: b
RATIONALE: Most of the decisions made by top managers involving strategy (including mergers,
acquisitions, and takeovers) and organization design are nonprogrammed.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 101
LEARNING OBJECTIVES: MGMT.GRIF.16. 4-1 - LO: 4-1
NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skills
STATE STANDARDS: United States - AK - DISC: Individual Dynamics
TOPICS: The Nature of Decision Making
KEYWORDS: Bloom’s: Comprehension
NOTES: Digital Story: Connect
12. Venus Electronics Inc. decided to explore markets in different countries. It has now set up a branch in Selenasia. This
is an example of a(n) _____ decision.
a. structured
b. nonprogrammed
c. standard
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