Final answer:
The statement is false because in risk environments, there is some knowledge available to estimate risks, whereas in uncertain environments, information about probabilities of outcomes is not available.
Step-by-step explanation:
The statement that a manager has less information to rely upon when making a decision in risk environments than when making a decision under uncertain environments is false. In risk environments, there is some knowledge about the probability of different outcomes, meaning there is a basis upon which to estimate the risk. In uncertain environments, the information about probabilities is not available, making decision-making more challenging due to the lack of reliable information. In a business context, as a firm becomes established, information about the company's products, revenues, costs, and profits becomes more widely available, and personal knowledge of the managers becomes less critical. Investors such as bondholders and shareholders rely on this publicly available information rather than personal relationships when deciding to provide financial capital.