Asked by Jasmine Mendoza on Jun 25, 2024
Verified
Being overconfident can lead managers to take unreasonable risks.
Unreasonable Risks
Unreasonable risks are exposures to danger or harm that are not justified by the potential rewards, often lacking in foresight or disregarding probable negative outcomes.
- Perceive the association between uncertainty and the degree of confidence in choices.
Verified Answer
AM
Alexa MarchandJun 28, 2024
Final Answer :
True
Explanation :
Overconfidence can make managers believe that they have a better understanding of the situation than they actually do, causing them to take excessive risks. This can result in negative outcomes such as financial losses or missed business opportunities.
Learning Objectives
- Perceive the association between uncertainty and the degree of confidence in choices.
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