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Multiple Choice Quiz
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1
Effective groups
A)Typically involve people with different skills, perspectives and values
B)Need to be set up by the diversity coordinator in the firm
C)Do better than individuals when it comes to judgmental tasks
D)All of the above
E)None of the above
2
Behavioral studies have shown that groups
A)Tend to outperform individuals on both intellectual problems and judgmental tasks
B)Amplify the degree of risk seeking behavior if the members of the group are mildly risk-seeking at the individual level
C)Are reluctant to accept decisions without prolonged discussion
D)Both a and c are correct
E)None of the above
3
Typically groupthink emerges when
A)People in the group get on well together
B)The leader is powerful and opinionated
C)The problem is stressful
D)The decision-making procedure is not spelled out
E)All of the above
4
Social loafing happens
A)On weekends when managers tend to hang out together in bars
B)During board meetings when board members defer to the chairman
C)Some board members choose to reduce their effort believing that other board members will pick up the slack
D)Both b and c are correct
E)None of the above
5
To avoid groupthink
A)Managers can be asked not to state their personal preferences at the beginning of the discussion
B)One member of the group can be asked to play devil’s advocate
C)Outside experts can be invited to attend meetings
D)Debate, disagreement and information sharing should be supported as good behavior
E)All of the above
6
An example of polarization is when
A)Groups become less risk seeking than their individual members
B)A group rejects a positive NPV project with large sunk costs when they would not do so as individuals
C)A group recommends going ahead with a negative NPV project with large sunk costs when they would not do so individually
D)All of the above
E)None of the above
7
7. Firms will have effective group processes when
A)They can hire good managers
B)They integrate their strategic and financial planning, compensation, monitoring, and stock ownership practices
C)Their managers are properly motivated and paid accordingly
D)All of the above
E)Both b and c are correct
8
Ways to share information within firms include
A)Representatives from across the firm making forecasts on how the actual financial statements will turn out at the end of the month, which are then summarized and distributed
B)The CEO sending a weekly memo summarizing his beliefs to all the managers
C)The CEO holding a weekly meeting with the staff where the staff members are asked to voice their grievances
D)All of the above
E)Both b and c are correct





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