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Essay Questions The hierarchy of business decision makers categorizes organizations based on how they use business research to make decisions. List and explain the three levels in the hierarchy. The three levels in the hierarchy are the base tier, the middle tier, and the top tier. Organizations in the base tier are called intuitive decision makers because they use past experience and intuition to make decisions. The middle tier organizations are called standardized decision makers because they base some decisions on business research and others are past experience. The top tier is called the visionaries because they consider research to be the foundation of any good decision. This group may also develop specific proprietary methods of…show more content…
Consequently, it is planning a special Alumni Bash for homecoming night and invitations have been sent to students who graduated between 1975 and 2000. Identify the dependent and independent variables in the example. State a hypothesis using the information provided. The dependent variable is alumni donations (percentage change in alumni who donate and dollar change in the amount given). The independent variable is the use of special events for alumni. A possible hypothesis is: Alumni who attend the special events are more likely to donate and donate at a higher level than those who do not attend the events. Essay Questions What are the three types of budgets in organizations where research is purchased and cost containment is crucial? List and describe each one. Is one more desirable than the others? Explain. The three types of budgets are rule-of-thumb budgeting, departmental budgeting, and task budgeting. Rule-of-thumb budgeting involves designating a fixed percentage of some criterion variable. For instance, an organization might specify that the research budget for the year will be 1% of sales. This ensures some resources are available but does not link the need for research to the amount budgeted. Departmental budgeting allocates a portion of total expenditures in the unit to research activities. Each unit then has the authority to approve their own projects. Task
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