Based on His Recollection of a Recent Product Failure, Abdul

question 91

Multiple Choice

Based on his recollection of a recent product failure, Abdul, the manager of a company, decides not to invest in a new product, even though the readily available information is infallible and irrelevant. This is an example of _____.

• A) confirmation error
• B) framing error
• C) availability bias
• D) escalating commitment
• E) anchoring bias

---

Definitions:

Statutory Amalgamation

A merger or combination of two or more companies into a new entity, governed and approved by a legal statute.

Reverse Takeover

A scenario where a smaller or a privately-held company takes over a larger or publicly-traded company, often to bypass the lengthy and complex process of going public.

Identifiable Intangible Assets

Assets that can be identified and separated from a company, such as trademarks, patents, and copyrights, which do not have physical substance but have value in a business context.

Fair Value

A measure of the price at which an asset could be bought or sold in a current transaction between willing parties, other than in a liquidation sale.