LOMA 335 The Insurance Company |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
and Operations Management (Module 3) |||\\\ |||\\\ |||\\\ |||\\\
exam with correct answers
|||\\\ |||\\\ |||\\\ |||\\\
A ____________ is a choice about a future action. - correct answer✔✔decision
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
1) ____________ level: Strategic decisions focus on establishing and revising corporate goals
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
and strategies. |||\\\
2) ____________ level: Business decisions focus on implementing corporate strategies for a
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
division or business segment. |||\\\ |||\\\ |||\\\
3) ______________ level: Operational decisions focus on the day-to-day implementation of
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
business-level strategies. - correct answer✔✔1) Corporate |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
2) Business |||\\\
3) Operational |||\\\
In efficient and effective organizations, decision makers at the business and operational levels
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
are ____________ - in other words, they have the necessary authority and responsibility - to
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
make decisions appropriate for their level in the company. - correct answer✔✔empowered
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
______ ______ decisions are infrequent decisions that can be made quickly at an individual
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
level because the risks involved with these decisions are relatively small. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Ad hoc |||\\\
Big-_____ decisions are infrequent, unfamiliar decisions that can have a profound effect on a
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
company's operations and future success. |||\\\ |||\\\ |||\\\ |||\\\
,Ex: a merger or acquisition, a major shift in corporate strategy, a major capital purchase -
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
correct answer✔✔bet |||\\\ |||\\\
Cross-_________ decisions are familiar decisions that can have broad organizational impact. - |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
correct answer✔✔cutting |||\\\ |||\\\
Like ad hoc decisions, ___________ decisions are typically low risk but they involve familiar and
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
frequent decisions. - correct answer✔✔delegated
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
____________: general rules appropriate for certain situations. - correct answer✔✔Heuristics |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Heuristics are sometimes appropriate and useful in business operations, in particular for ____ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
____ decisions that are low risk and low occurrence. - correct answer✔✔ad hoc
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
One of the most difficult aspects of decision making is identifying the ___________ or need. -
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
correct answer✔✔problem |||\\\ |||\\\
Good business questions relate to the five Ws and also answer the question _______. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Five W's - who, what, when, where, why
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
How
Questions like these call for answers that are __________, meaning verifiable or evidence- |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
based. - correct answer✔✔empirical |||\\\ |||\\\ |||\\\ |||\\\
The first step of the decision making process is often subject to __________ errors, where
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
people may identify and define a problem too narrowly because they assume they know what
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the issue is. - correct answer✔✔framing
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
, Decision _____________ are the options a decision maker considers before selecting a future
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
course of action. - correct answer✔✔alternatives |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
_____________ bias is the human tendency to seek, interpret, and remember information that |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
confirms preexisting beliefs. - correct answer✔✔Confirmation
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
_______ refers to unprocessed facts and without some context it's meaningless. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Data
_____________ is a collection of data that is converted into a form that is meaningful or useful |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
for the accomplishment of some objective. - correct answer✔✔Information
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
In general, organizations try to make relevant information available for decision making
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
through __________-wide reporting, which is the use of knowledge management systems and
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
informative updates across operations such that employees at every level of an organization |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
can access the information that is relevant and necessary for their roles. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔enterprise
When making big-bet decisions, dissenting opinions are crucial because of the high costs of
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
making a bad decision. |||\\\ |||\\\ |||\\\ |||\\\
As a result, they often include a formal position known as a __________ ___________, which is
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
a person assigned to make a case against a decision-making team's proposal. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔devil's advocate |||\\\
At the evaluation an analysis stage of decision making, teams may become subject to analysis
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
____________ - spending excessive time and energy in gathering information. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
and Operations Management (Module 3) |||\\\ |||\\\ |||\\\ |||\\\
exam with correct answers
|||\\\ |||\\\ |||\\\ |||\\\
A ____________ is a choice about a future action. - correct answer✔✔decision
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
1) ____________ level: Strategic decisions focus on establishing and revising corporate goals
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
and strategies. |||\\\
2) ____________ level: Business decisions focus on implementing corporate strategies for a
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
division or business segment. |||\\\ |||\\\ |||\\\
3) ______________ level: Operational decisions focus on the day-to-day implementation of
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
business-level strategies. - correct answer✔✔1) Corporate |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
2) Business |||\\\
3) Operational |||\\\
In efficient and effective organizations, decision makers at the business and operational levels
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
are ____________ - in other words, they have the necessary authority and responsibility - to
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
make decisions appropriate for their level in the company. - correct answer✔✔empowered
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
______ ______ decisions are infrequent decisions that can be made quickly at an individual
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
level because the risks involved with these decisions are relatively small. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Ad hoc |||\\\
Big-_____ decisions are infrequent, unfamiliar decisions that can have a profound effect on a
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
company's operations and future success. |||\\\ |||\\\ |||\\\ |||\\\
,Ex: a merger or acquisition, a major shift in corporate strategy, a major capital purchase -
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
correct answer✔✔bet |||\\\ |||\\\
Cross-_________ decisions are familiar decisions that can have broad organizational impact. - |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
correct answer✔✔cutting |||\\\ |||\\\
Like ad hoc decisions, ___________ decisions are typically low risk but they involve familiar and
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
frequent decisions. - correct answer✔✔delegated
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
____________: general rules appropriate for certain situations. - correct answer✔✔Heuristics |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Heuristics are sometimes appropriate and useful in business operations, in particular for ____ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
____ decisions that are low risk and low occurrence. - correct answer✔✔ad hoc
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
One of the most difficult aspects of decision making is identifying the ___________ or need. -
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
correct answer✔✔problem |||\\\ |||\\\
Good business questions relate to the five Ws and also answer the question _______. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Five W's - who, what, when, where, why
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
How
Questions like these call for answers that are __________, meaning verifiable or evidence- |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
based. - correct answer✔✔empirical |||\\\ |||\\\ |||\\\ |||\\\
The first step of the decision making process is often subject to __________ errors, where
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
people may identify and define a problem too narrowly because they assume they know what
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the issue is. - correct answer✔✔framing
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
, Decision _____________ are the options a decision maker considers before selecting a future
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
course of action. - correct answer✔✔alternatives |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
_____________ bias is the human tendency to seek, interpret, and remember information that |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
confirms preexisting beliefs. - correct answer✔✔Confirmation
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
_______ refers to unprocessed facts and without some context it's meaningless. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Data
_____________ is a collection of data that is converted into a form that is meaningful or useful |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
for the accomplishment of some objective. - correct answer✔✔Information
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
In general, organizations try to make relevant information available for decision making
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
through __________-wide reporting, which is the use of knowledge management systems and
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
informative updates across operations such that employees at every level of an organization |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
can access the information that is relevant and necessary for their roles. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔enterprise
When making big-bet decisions, dissenting opinions are crucial because of the high costs of
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
making a bad decision. |||\\\ |||\\\ |||\\\ |||\\\
As a result, they often include a formal position known as a __________ ___________, which is
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
a person assigned to make a case against a decision-making team's proposal. - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔devil's advocate |||\\\
At the evaluation an analysis stage of decision making, teams may become subject to analysis
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
____________ - spending excessive time and energy in gathering information. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
