Discuss the roles that uncertainty and risk play in managerial decision making.
What will be an ideal response?
Student answers will vary, but should demonstrate accurate knowledge about the risks managers face. Uncertainty means the manager has insufficient information to know the consequences of different actions. For example, uncertainty about the strength and timing of the economic recovery made businesses slow to start hiring. But economies do not strengthen until consumer demand picks up, which does not happen until employment rises. When you can estimate the likelihood of various consequences but still do not know with certainty what will happen, you are facing risk. Risk exists when the probability of an action being successful is less than 100 percent and losses may occur. If the decision is the wrong one, you may lose money, time, reputation, or other important assets.
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A statute of limitations is a statute that provides a suggested timeline for bringing a case
Indicate whether the statement is true or false
The accounting rate of return is calculated as:
A. The annual cash flows divided by the annual average investment. B. The annual cash flows divided by the total investment. C. The annual average investment divided by the after-tax income. D. The annual after-tax income divided by the annual average investment. E. The annual after-tax income divided by the total investment.
Three broad categories of definitions of quality are:
A) product quality, service quality, and organizational quality. B) user based, manufacturing based, and product based. C) internal, external, and prevention. D) low-cost, response, and differentiation. E) Pareto, Shewhart, and Deming.
Quality planning is more about process and is based on problems related to processes
Indicate whether the statement is true or false