A Failing Project Becomes a Black Hole for Money,time,and Personnel

question 47

Multiple Choice

A failing project becomes a black hole for money,time,and personnel as management continues to pour resources into it despite the growing expectation that it will fail miserably.This phenomenon is known in project management circles as:

• A)The vanishing horizon.
• B)The Pareto principle.
• C)Escalation of commitment.
• D)Negative outcome disposition.

---

Definitions:

Same Industry

Pertains to businesses or entities that operate within the same sector or category of the economy, producing similar goods or services.

Risky

Involving or exposing someone to a possibility of loss or injury.

Random Walk Theory

The hypothesis that stock market prices evolve according to a random walk and thus cannot be predicted.

Stock Prices

The market price of a share of a company's stock, reflecting investor sentiment and company valuation at a given time.