Jim Purchases Stock in a Public Company and Refuses to Sell

question 13

Multiple Choice

Jim purchases stock in a public company and refuses to sell it even after repeated drops in the original price he paid for the stock.Jim has decided to purchase more of the stock in anticipation of making a profit, and has decided to keep the stock in the face of increasing losses.Jim is suffering from

• A) organizational delusion.
• B) problem misidentification.
• C) escalation of commitment.
• D) groupthink.
• E) suboptimizing.

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Definitions:

Operations

Procedures carried out in the execution of a task, workflow, or within a functional area of a business or study.

Intuitive Thought

A cognitive process that occurs without analytical reasoning, often based on experiences and immediate perceptions.

Innate

The inherent characteristics or abilities present from birth, not acquired or learned through experience.

Acquired

Gained or developed through experience, training, or exposure rather than innate.