Escalation of Commitment to a Failing Course of Action

question 173

Multiple Choice

Escalation of commitment to a failing course of action

• A)only occurs if the decision maker was personally responsible for the initial loss.
• B)shows how people may treat sunk costs improperly.
• C)is what defines the occurrence of a risky shift.
• D)is the most common outcome of information overload.
• E)only occurs in highly competitive situations.

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Definitions:

Benchmarking Partner

An entity against which a company measures its processes, practices, or performance for improvement.

Same Type Of Business

Companies or enterprises that operate in the same industry or sector, often offering similar products or services.

Balanced Scorecard

A strategic planning and management system that uses a broad range of financial and non-financial metrics to assess an organization's performance.

Bottom-Line Profit

The net income reported at the bottom line of the income statement, indicating the profit remaining after all expenses have been deducted from total revenues.