Posttest
Kings Catering will need a bigger kitchen to support plans to cater weddings on the other side of the city. Mr. ?King needs to decide how he will pay for the expansion. He has begun researching loans for small businesses.
What part of the decision-making process is Mr. ?King currently in?
A) ?analyze possible actions
B) ?collect information
C) ?implement a solution
D) ?identify the problem
The correct answer and explanation is:
Correct Answer: B) Collect information
Explanation:
In the scenario provided, Mr. King is actively researching loans for small businesses to determine how to fund the expansion of his kitchen. This step is part of the decision-making process, specifically the phase where an individual or organization collects information to evaluate available options before making a final choice.
The decision-making process typically involves several steps:
- Identify the problem: Recognizing the need for a solution—in this case, Kings Catering realizes they require a larger kitchen to support their expansion plans for catering weddings in another part of the city.
- Collect information: Once the problem is identified, the next step is gathering data about possible solutions. Mr. King is in this phase as he explores loans for small businesses. This involves understanding loan terms, interest rates, repayment plans, and other financial details that will inform his ultimate decision.
- Analyze possible actions: After collecting the necessary information, Mr. King will compare the options, weighing the pros and cons of various loan offers to choose the most suitable one.
- Choose and implement a solution: Once the best course of action is determined, Mr. King will take steps to apply for and secure the loan to fund the kitchen expansion.
- Evaluate the decision: After implementation, it’s important to assess whether the chosen solution successfully addressed the problem.
By focusing on collecting information, Mr. King ensures that his decision is informed and based on factual data rather than assumptions. This step is crucial to minimize financial risk and ensure the business can achieve its goals effectively. Skipping this phase could lead to poor choices, such as accepting unfavorable loan terms, which could jeopardize Kings Catering’s financial stability in the long run. Thus, collecting information is a vital step in responsible decision-making.