If a Human Resources manager can estimate the probability that a certain percentage of employees will take advantage of a proposed benefit plan, the manager is operating under a condition of

a. certainty.

b. rationalization.

c. estimation.

d. risk.

e. uncertainty.

d. risk.

Explanation:

Risk is the potential for uncontrolled loss of something of value, it can also be defined as the intentional interaction with uncertainty. In this context, risk is the probability that a certain percentage of employees will take advantage of benefit plan that will be proposed by the human resources manager that is the manager is risking the loss or mis use of the business plan.

Answer: d. risk

Explanation: risk is information condition that lies between certainty and uncertainty in making decisions. By estimating the probability that a certain percentage of his employees will take advantage of a proposed benefit plan, he is trying to know his choices will lead to benefit or disaster. A condition of risks exist when the human resource manager has some information regarding the outcome of the decision but does not know everything when making decisions. While the manager is aware of all the alternatives, he is however unaware of their consequences and thus, the need for probability estimates.