CMA Foundation · Fundamentals of Business Economics and Management · Decision-making - Types and Process
Mehta Textiles has only one supplier of a special dye and must buy from it at the price fixed by that supplier. Which feature of decision-making is missing in this situation?
The missing feature is the existence of alternatives. Mehta Textiles can buy from only one supplier at a fixed price, so there is nothing to choose between. Decision-making requires at least two possible courses of action; without them, the situation is compulsion rather than a real decision.
- APresence of a goal
- BExistence of alternatives to choose fromCorrect
- CInvolvement of a manager
- DRelation to the future
Explanation
With a single supplier at a fixed price, the firm has no choice among options. A decision needs at least two alternatives, so this feature is absent. The goal, manager's involvement and future orientation can still be present, so those options do not identify the missing element.
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