Escalation of Commitment Can Occur When People Don't ________

question 55

Multiple Choice

Escalation of commitment can occur when people don't ________.

• A)want to make a decision
• B)want to admit that an earlier decision was flawed
• C)accept current conditions
• D)understand that conditions have changed

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Definitions:

Average Accounting Return

A financial ratio that compares the average net income to the average investment made in a company.

Payback Method

A method in capital budgeting that measures the duration needed to recover an investment's expenses.

Short-Term Projects

Initiatives or tasks that are expected to be completed or yield results within a relatively brief period, typically less than one year.

Risk Level

An indicator of the level of risk and possible monetary loss associated with making an investment choice.