An Increased Commitment to a Previous Decision Despite Evidence That

question 109

Multiple Choice

An increased commitment to a previous decision despite evidence that it may have been wrong is a phenomenon called __________.

• A) confirmation bias
• B) intuition
• C) overconfidence bias
• D) hindsight bias
• E) escalation of commitment

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Definitions:

Non-current Liabilities

Non-current liabilities are obligations a company owes that are not expected to be paid within the next twelve months, including long-term loans, bond payables, and deferred tax liabilities.

Current Assets

Resources anticipated to be turned into cash, disposed of, or used up either within a year or over the course of the operating cycle, depending on which period extends further.

Liquidity

Refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.