William Invested in an Initial Public Offering

question 18

Multiple Choice

William invested in an initial public offering.After a month he lost 5 percent.After a year he lost 50 percent.After two years he lost 80 percent.William's decision to keep the investment is an example of ____.

• A)political forces
• B)intuition
• C)escalation of commitment
• D)rationality
• E)satisficing

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Definitions:

Decision Maker's Emotions

The feelings and emotional states that influence the judgment and choices of an individual in charge of making decisions.

Problem Identification

The process of recognizing and defining an issue or challenge that requires resolution.

Satisficing

The process of seeking solutions or outcomes that are satisfactory and sufficient, rather than optimal.

Maximization

the action of making something as large or as great as possible.