A Project with Which One of These Sets of Values

question 38

Multiple Choice

A project with which one of these sets of values would you be most apt to reject?

• A) High operating leverage, sales projected at the accounting break-even level, and no option to abandon
• B) High operating leverage, sales projected at the economic break-even level, and an option to abandon
• C) Low operating leverage, sales projected at the accounting break-even level, and an option to abandon
• D)Low operating leverage, sales projected at the economic break-even level, and an option to expand

---

Definitions:

Availability Bias

A cognitive bias that influences people to overestimate the importance of information that is readily available to them, often leading to skewed perceptions and judgments.

Anchoring Bias

A cognitive bias where individuals rely too heavily on an initial piece of information to make subsequent judgments or decisions.

Confirmation Error

A cognitive bias that involves focusing on information that confirms existing beliefs and ignoring information that contradicts them.

Ethics Double-check

A review process designed to ensure that actions or decisions align with moral and professional standards of conduct.