Bachelor of General Studies (BGS) Degree Practice Exam

What term describes companies that believe they can make decisions unilaterally?

1. Active

2. Reactive

3. Proactive

4. Inactive

The correct answer is: Inactive

The term that describes companies believing they can make decisions unilaterally is often associated with a lack of responsiveness or engagement with their environment or stakeholders, which aligns with the concept of being inactive. Such companies tend to operate in isolation when making decisions, showing little to no interaction or consideration for external feedback, changes in consumer behavior, or industry trends. Active, reactive, and proactive companies, on the other hand, tend to operate in a more dynamic way. Active companies are typically engaged and responsive, taking initiative in their decision-making processes. Reactive companies respond to events as they occur rather than taking the lead or anticipating changes. Proactive companies anticipate future challenges and opportunities, striving to stay ahead of the competition and actively shape their market. Therefore, a company that operates unilaterally is best described as inactive, as it does not engage with external factors or respond to its environment.