Escalation of Commitment Is the Tendency of Decision Makers to Invest

question 39

True/False

Escalation of commitment is the tendency of decision makers to invest additional time, money, or effort into bad decisions or unproductive courses of action that are already draining the organization's resources.

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Definitions:

Interest

The charge for borrowing money or the compensation paid to depositors on their deposits, usually expressed as an annual percentage rate.

Unpaid Balance

The amount of money that is still owed on a loan or credit line that has not yet been paid.

Loan Principal

The amount of money that is borrowed and must be repaid, not including interest or any other charges.

Property Tax Payable

A liability representing taxes due on the property owned by an individual or company, typically paid annually.