Ulrich Bought an Investment Property That He Intended to Rent

question 29

Multiple Choice

Ulrich bought an investment property that he intended to rent to tourists on the beach.After six months,he had had only one rental for far less than the cost he had hoped to charge.His wife encouraged him to sell the home,but he insisted that it will be profitable if they don't give up and keep trying to rent it.Ulrich's unwillingness to sell the home and cut his losses is an example of the______________effect.

• A)escalation
• B)persistence
• C)endowment
• D)sunk cost

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Definitions:

Environmental Scanning

is the process of systematically gathering information about the external environment to identify potential threats and opportunities.

Competitive Intelligence

The process of gathering, analyzing, and using information about competitors, market trends, and the business environment to support strategic decision making.

Product Positioning

The process of market positioning of a product, including strategies to present a product in the best possible light to different target markets.