Escalation of Commitment Refers to ________

question 60

Multiple Choice

Escalation of commitment refers to ________.

• A)commitment to a bad decision due to unwillingness to go against the opinion of the majority
• B)an increased commitment to a previous decision despite evidence that it may have been wrong
• C)the strengthening of commitment to a particular course of action due to greater motivation by others
• D)greater commitment to a decision because of one's belief that it is "the right thing to do"

---

Definitions:

Cost Method

An accounting approach used to measure the value of an investment, where the investment's cost includes the purchase price and any costs of acquisition.

Trading Securities

These are securities that a company holds for the purpose of selling them in the near term to profit from price variations, reported at fair value.

Comprehensive Income

The change in equity of a business enterprise during a period from transactions and other events from non-owner sources, including all revenues, gains, expenses, and losses.

Income Statement

A financial report that provides a summary of a company's revenues, expenses, and profits/losses over a specific period of time.