Bob DeSlob,CEO of Westlake Inc

question 48

Multiple Choice

Bob DeSlob,CEO of Westlake Inc. ,had supported the development and distribution of the Super Widget,a product that is expensive to make.The Super Widget failed to meet its expected sales.decides to invest more resources to produce and aggressively market the Super Widget,rationalizing that if he did not invest more in the product,what he has invested would be lost.Bob is engaging in:

• A)sunk cost fallacy.
• B)argumentum ad baculum.
• C)argumentum ad hominem.
• D)reductio ad absurdum.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overhead, payroll, taxation, and interest payments.

Option Contract

A financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.

At The Money

Describes an option where the current price of the underlying asset is equal to the strike price of the option.

Dramatic Decline

A rapid and significant drop in the value or price of an asset or market.