Which Statement Is Not Correct

question 5

Multiple Choice

Which statement is not correct?

• A) project proposers tend to be overconfident about the likely success of the project.
• B) project proposers often exaggerate the likely profitability in order to gain acceptance.
• C) overconfidence and enthusiasm can result in increased effort.
• D) most project proposals are based on very conservative forecasts.

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Definitions:

Expected Revenue

Expected revenue is the amount of money a business anticipates earning over a specific period, based on forecasted sales volumes and prices.

Rationally

Making choices that are consistent and in line with one's self-interest, guided by the use of reason and available information.

Sealed-Bid

A type of auction or tender where bidders submit confidential offers, and usually, the highest bid wins without the bids being disclosed to other participants.

Second-Price Auction

In a second-price auction, the highest bidder wins but pays the price bid by the second-highest bidder, encouraging participants to bid their true value.