Escalation of Commitment Can Be Minimized by Ensuring That

question 164

Multiple Choice

Escalation of commitment can be minimized by ensuring that:

• A)there are ready-made alternatives to resolve the problem.
• B)those who choose the decision are different from those who implement and evaluate it.
• C)the team leader has strong opinions about the preferred options.
• D)organizational goals are relatively ambiguous.
• E)the person who makes the decision is also responsible for terminating the project.

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Definitions:

Gain On Sale

The profit realized from the sale of assets when the selling price exceeds the book value of the asset sold.

Semiannual Interest

Interest that is computed and disbursed biannually, frequently associated with bonds and lending agreements.

Accrued Interest

Interest that has been incurred but not yet paid, accumulating on loans or bonds over time until payment is made.

Interest Receivable

The amount of interest that has been earned but not yet received in cash.