When people seek information to support their point of view and discount data that do not this is bias?
mangement ch 7
| Answer | |
|---|---|
| strategies that simplify the process of making decisions. | heuristics |
| managers use information readily available from memory to make judgements. | availability bias. |
| when people seek information to support their point of view and discount data that do not. | confirmation bias |
When Satisficing managers look for alternatives until they find one that is satisfactory not optimal?
With satisficing, managers look for alternatives until they find one that is satisfactory, not optimal. With groups, a consensus is not usually required with decisions. The larger and more diverse the group, the higher the quality of the decision.
What are some decision making strategies?
A 7-Step Decision-Making Strategy
- Investigate the situation in detail.
- Create a constructive environment.
- Generate good alternatives.
- Explore your options.
- Select the best solution.
- Evaluate your plan.
- Communicate your decision, and take action.
What are the three basic decision areas that managers face?
There are three decisions that financial managers have to take:
- Investment Decision.
- Financing Decision and.
- Dividend Decision.
What are the key issues in financial decision making?
The key aspects of financial decision making relate to financing, investment, dividends and working capital management….Factors affecting financial decisions are −
- Cost.
- Risk.
- Flotation cost.
- Cash flow position of the business.
- Control considerations.
- State of capital markets.
What are 3 fundamental decisions that are of concern the finance team?
Financial managers are concerned with three fundamental decisions when running a business:
- Capital budgeting (investment) decisions: Identifying the productive assets the firm should buy.
- Financing decisions: Determining how the firm should finance or pay for assets.
What are the two basic sources of funds for all businesses?
Solution:The two basic sources of funds for all businesses are debt and equity.
What are the financing decisions?
The Financing Decision is a crucial decision that is to be made by the financial manager, the decision is about the financing-mix of an organization. Financing Decision is focused on the borrowing and allocation of funds required for the investment decisions of the firm.
Which of the following is one of the three primary areas of finance?
The three major areas of business finance are corporate finance, investments and financial markets, and risk management.
What are the 4 areas of finance?
The four main areas of finance are corporate finance, investments, financial institutions and markets, and international finance.
What are the four major sub areas of finance?
The major subareas of finance are investments, financial management, financial institutions, market, and international finance. Risk is a potential future negative impact to value and or cash flow. It is often discussed in terms of probability of loss and the expected magnitude of the loss. 2.
Why are financial intermediaries so important to an economy?
Financial intermediaries serve as middlemen for financial transactions, generally between banks or funds. These intermediaries help create efficient markets and lower the cost of doing business. Financial intermediaries offer the benefit of pooling risk, reducing cost, and providing economies of scale, among others.
What is financial intermediaries and its functions?
A financial intermediary refers to an institution that acts as a middleman between two parties in order to facilitate a financial transaction. Corporations are allowed to enter into contracts, sue and be sued, own assets, remit federal and state taxes, and borrow money from financial institutions.