Steve Submitted a Proposal to His Boss for a New

question 97

Multiple Choice

Steve submitted a proposal to his boss for a new piece of equipment that his department needed.He felt sure that his proposal would be approved even though it was a difficult year financially for his company,and he predicted that it would be approved.Unfortunately,to his surprise,his proposal was rejected.Steve has exhibited

• A)anchoring bias.
• B)confirmation bias.
• C)randomness error.
• D)overconfidence bias.
• E)escalation of commitment.

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Definitions:

Accrue

The process of recording expenses and revenues that have been incurred or earned, respectively, but not yet received or paid, in order to reflect the true financial position of an entity.

Estimated Loss

An anticipated loss that a company might suffer due to various risks and uncertainties, and which is accounted for in advance.

Appropriation

The allocation or setting aside of funds by a company for a specific purpose or the restriction of retained earnings distributed to shareholders.

Inventory Finance

A line of credit or loan specifically intended to help businesses purchase inventory, often secured by the inventory itself.