A Company Which Has Invested So Heavily in a Particular

question 23

Multiple Choice

A company which has invested so heavily in a particular strategy that it will not consider a change in this strategy even if it is not successful,would be an example of which strategy to avoid?

• A) follow the leader
• B) hit another home run
• C) arms race
• D) do everything
• E) losing hand

---

Definitions:

Outstanding Principal

The remaining amount of money owed on a loan or mortgage, not including interest, that has yet to be repaid.

Equal Payments

Regular payments of the same amount made over a period of time.

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods once a year.

Interest

The fee or rent that lenders charge for the use of their money.