A Manager Refuses to Replace an Existing Asset Even Though

question 45

Multiple Choice

A manager refuses to replace an existing asset even though an extensive analysis indicates that replacement is desirable.One possible explanation for the manager's action is that:

• A) A financial loss may be reported in the current period if the asset is replaced.
• B) The manager is concerned that his or her superior may think that the original asset purchase was a mistake on the part of the manager.
• C) The manager expects to be promoted or transferred in the near future and is concerned primarily about short-term performance.
• D) All of these answers are correct.

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Definitions:

Temptation

A desire to engage in short-term urges for enjoyment that threatens long-term goals, relevant in marketing when consumers are enticed by products.

Myth

A traditional story, often involving supernatural beings or phenomena, that serves to explain a natural or social phenomenon.

Uncertainty Avoidance

A cultural dimension that describes the degree to which people in a society feel uncomfortable with ambiguity, uncertainty, and risk, influencing behaviors and practices.

Myth

A traditional story or belief that embodies the values and ideals of a society or group, often used in branding to convey complex ideas simply.