How Does the Principle of Diversification Work

question 133

Essay

How does the principle of diversification work?

Understand escalation of commitment, its causes, and effects.

Relate personality traits to the likelihood of escalation of commitment.

Recognize the treatment and impact of sunk costs in decision making.

Identify examples of cognitive biases in post-decision evaluations.

---

Definitions:

Counseling Notes

Written records kept by counselors or therapists that detail the discussions and progress of sessions with clients.

Formal Appraisals

Structured assessments where employee performance is evaluated and documented on a regular basis, typically annually.

Employment Interview

A formal meeting between a job applicant and an employer to assess the applicant's qualifications for a position.

Employee Warnings

Official notices issued to employees to address violations or misconduct, often as part of a disciplinary process.