A Gradual Process in Which Individuals Escalate Their Commitment to a Course

question 206

Multiple Choice

A gradual process in which individuals escalate their commitment to a course of action to justify their investment of time, money, or effort is called:

• A) diffusion of responsibility.
• B) fundamental attribution error.
• C) acculturation.
• D) entrapment.

---

Definitions:

Lockbox System

A service provided by banks to companies for the collection of payments from customers, involving the use of a special post office box.

Cash Conversion

The process by which a company turns its inventory or other current assets into cash, often measured through cycles or time periods.

Usable Cash

The portion of cash balances that is readily available for business operations or other immediate use, excluding reserved or allocated funds.

Target Cash Balance

The desired cash balance that a firm plans to maintain in order to conduct business.