One of the Reasons That Escalation of Commitment Occurs Is

question 34

Multiple Choice

One of the reasons that escalation of commitment occurs is the:

• A)lack of optimism in managers.
• B)illusion of having control on the future.
• C)willingness to abandon bad decisions.
• D)continuous effort to increase cognitive dissonance.

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Definitions:

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.

Concept

An abstract idea or a general notion that forms the foundation of a project, strategy, or theory.

Semiannual Payments

Payments made twice a year, often in the context of loan repayments or interest payments.

Compounded Semiannually

A method of calculating interest where the interest earned over half a year is added to the principal, and the new total becomes the basis for the next round of interest calculation.