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BUSI 240 Quiz 4 (Version 5), Verified and Correct Answers, Liberty University
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BUSI 240 Quiz 4 (Version 5), Verified and Correct Answers, Liberty University
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Course: BUSI 240- Liberty UniversityTest: Quiz 4
• Question 1
2 out of 2 points
The concept of bounded rationality holds that
Selected Answer: decision makers process limited and imperfect
information and therefore rarely select the best choice.
Response Feedback: Nobel Prize-winning organizational scholar
Herbert Simon argued that people engage in bounded rationality because
they process limited and imperfect information and rarely select the best
choice.
• Question 2
2 out of 2 points
When a business must decide between completing a project that is over
budget and past due versus starting over, they are evaluating the
Selected Answer: sunk costs effect.
Response Feedback: Another disincentive to axing a failing project is
sunk costs—the value of resources already invested in the decision. The
rational choice view states that investing resources should be determined
by expected future gains and risk, not the size of earlier resources
invested in the project. Yet people inherently feel motivated to invest
more resources in projects that have high sunk costs. A variation of sunk
costs is time investment.
• Question 3
2 out of 2 points
, People tend to be more creative when they
Selected Answer: have a reasonable level of job security.
Response Feedback: Companies foster creativity by providing a
comfortable degree of job security, which explains why creativity
suffers during times of downsizing and corporate restructuring.
• Question 4
2 out of 2 points
Scenario B
Alvin, the production manager at the Paragon Company, wants to select
the best supplier of raw materials from among several vendors. He has
several choices and has done research into which company provides the
best services and products. One company is known to be extremely
timely, another is much lower in price but often late in deliveries, and
the third is well-known to provide the highest quality products available.
According to the rational choice decision-making process, the first step
in solving this problem would be
Selected Answer: identifying the problem or opportunity.
Response Feedback: The first step in the rational choice decision-
making process is to identify the problem or recognize an opportunity. A
problem is a deviation between the current and the desired situation—
the gap between "what is" and "what ought to be."
• Question 5
0 out of 2 points
The illumination stage in the creative process
Selected Answer: occurs after the verification stage in the process.
Response Feedback: Illumination refers to bits of inspiration and can
be quickly lost if not documented.
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