Escalation of Commitment Is More Likely to Occur When

question 16

Multiple Choice

Escalation of commitment is more likely to occur when:

• A)the decision maker has a strong need to justify their decision.
• B)the costs of ending the project are high or unknown.
• C)the decision maker screens out negative information about the decision due to perceptual defence.
• D)The decision maker dislikes losing a particular amount more than he/she likes gaining the same amount.
• E)all of these conditions exist.

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Definitions:

Business Plan

A road map for the entire organization for a specified future period of time, such as one year or five years.

Product Development

Product development is the complete process of bringing a new product to market, encompassing idea generation, concept testing, design, engineering, production, and marketing.

Market Development

Market development is a growth strategy where a business seeks to sell its existing products into new markets to attract additional customers.

Diversification

The process of a business enlarging or varying its range of products or field of operation to reduce risk and increase profit.