The Idea That After Making a Large Investment,a Manager Should

question 40

Multiple Choice

The idea that after making a large investment,a manager should not abandon the project is known as the:

• A)negative NPV fallacy.
• B)abandonment fallacy.
• C)sunk cost fallacy.
• D)dependence fallacy.

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Definitions:

Aversive Stimuli

Unpleasant or harmful stimuli that an organism seeks to avoid or escape.

Primary Reinforcer

A reinforcer that is innately satisfying; one that does not take any learning on the organism’s part to make it pleasurable.

Praise

Expression of approval, commendation, or admiration directed at an individual or group.

Money

A medium of exchange, in the form of coins and banknotes, used to facilitate transactions.