Multiple Choice: The Decision Process Select the correct answer for each of the following:

1. The steps in the decision-making process include:

a. Identifying and evaluating alternatives.

b. Gathering information.

c. Identifying the goal.

d. All of the above.

2. In arriving at a decision, a business manager should:

a. Gather only information that supports the beliefs of the decision maker.

b. Be able to determine the outcome of the decision.

c. Attempt to determine the potential consequences of each alternative course of action.

d. Choose the course of action likely to be of the greatest direct personal benefit to the decision maker.

3. The information used in arriving at a decision should be:

a. Pertinent to the decision being made.

b. Complete and not summarized.

c. Consistent with the biases of the information provider.

d. Accurate regardless of the cost.

4. The decision process is useful to which of the following decision makers?

a. Managers, but not investors.

b. Investors, but not creditors.

c. Creditors, but not managers.

d. Both creditors and managers.