Question 1: Which of the following is statements is consistent with the sunk cost's fallacy?

a. "I've seen this before. We encountered this situation a few years ago. We should do what we did before."

b. "We've already invested a significant amount of time, resources, and dollars in this project. It's too late to back out now."

c."Even though everyone is telling us the market doesn't support our effort, we should go forward. My data is better and, quite frankly, we're smarter than they are."

d. "We don't have enough data to make this decision. We should collect more and then analyze."

Question 2: Which of the following represents the proper sequence of the rational decision-making model?

a.Information analysis, problem solving, choosing between alternatives, making a decision, decision implementation, feedback.

b. Problem identification, information search and analysis, generate alternatives, evaluate alternatives, making a decision, develop action plans.

c. Information gathering, problem definition, identification of alternatives, analyzing alternatives, making a decision, decision implementation.

d. Information gathering, information analysis, problem definition, identification of alternatives, making a decision, decision implementation

Question 3: Framing refers to whether questions are bounded.

a.False

b.True

Question 4: The primacy effect persists due to __________, where initial information affects the conclusion one draws, and his conclusion them impacts later judgement.

a. belief updating

b. stereotypes

c. first impressions

d. the primacy effect

Question 5: _______ need to focus on individual performance and avoid comparisons that may result in the contrast effect.

a. People

b. Consultants

c. Leaders

d. Peers

Question 6: A perspective that people treat the two types of risk (gain versus loss) in a completely different way to maximize their perceived outcome is __________

a. Prospect theory

b. Primacy

c. bounded rationality

d.intuition

Question 7: Framing a question question matters because _____________.

a. otherwise, risk cannot be quantified.

b. the way a problem is presented has an impact on how gains and losses are interpreted

c. doing the necessary background work results in better decision making

d. forecasting performance involves a great deal of uncertainty

Question 8: Which of the following statements would likely be made by someone who matches the profile of Mintzberg's entrepreneur?

a. "charting a course for the company can be difficult because we have to carefully evaluate the pros and cons of each strategic initiative."

b. "We have to look to the future. The future of this company depends on forging ahead into new markets with new ideas."

c. "Once we decide on what course of action to take, we should get behind that decision and move forward in the same direction."

d. "We're all fighting for scarce resources. What we have to do is prioritize to see what gets done first."

Question 9: A leader's performance evaluation of a person is affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.

a. True

b. False

Question 10: You are leading a team that is about to embark upon a difficult negotiation in a joint venture. Before you, your manager says to you, "Make sure you keep everyone in line and on the same page." Which situational factor is your manager attempting to mitigate?

a. Unclear or conflicting goals.

b. uncertainly of compensation

c. lack of information

d. time constraints