Escalation of Commitment Is Best Described as the ________

question 45

Multiple Choice

Escalation of commitment is best described as the ________.

• A)strategy of first entering a country on a small scale
• B)process of entering a country because "everyone else is going there"
• C)expectation of a higher return in more politically risky environments
• D)increased likelihood of investing in a country because of having spent considerable time and money in examining it

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Definitions:

Closing Process

The procedure in accounting that involves the transfer of all income and expense account balances to the retained earnings to prepare the ledger for the next accounting period.

Real Accounts

Accounts that relate to assets, liabilities, and equity, which are not closed at the end of the accounting period and carry their balances into future periods.

Permanent Accounts

Accounts that carry their balances over into the next accounting period, such as assets, liabilities, and equity accounts.

End-of-period Spreadsheet

A tool used in accounting to compile all financial information before closing the books at the end of a reporting period.