Escalation of Commitment Is More Likely to Occur When

question 133

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 defense.
• 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:

Risk of Loss

Refers to the chance that an investment's actual returns will be different than expected, including the possibility of losing some or all the original investment.

Breaches

Incidents where laws, contracts, or promises have been violated or not fulfilled.

Identification

The process of determining or establishing the identity of a person or thing.

Risk of Loss

Refers to the possibility that an asset's value could decrease due to a variety of factors, potentially resulting in financial loss for the holder.