Which of the following statements about decision-making is true?
A) Risk should not be taken into account.
B) Objectives should be quantitative and not qualitative.
C) Managers often do not have a clear understanding of the real source of the problem.
D) Sunk costs should usually be taken into account.

Question

Quizplus · Accepted Answer

Many managers struggle with decision-making because they fail to identify the root cause of the problem. This leads to ineffective solutions or solutions that only address the symptoms of the problem. It is important for managers to take the time to analyze the situation and identify the root cause before making a decision. Options A, B, and D are all incorrect. Risk is an important consideration in decision-making, objectives can be either qualitative or quantitative, and sunk costs should generally be ignored in decision-making.

Which of the Following Statements About Decision-Making Is True