Arthur Authorizes the Expenditure of an Additional $100,000 for the Production

question 65

Multiple Choice

Arthur authorizes the expenditure of an additional $100,000 for the production of a new product despite mounting concerns that it will be unprofitable. The cost of the new product has already increased far beyond the initial plans and projections. Arthur's continuing support for this project illustrates the phenomenon of __________.

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

---

Definitions:

Breach Of Contract

The failure of one party to fulfill any of its agreed terms and conditions without a lawful excuse.

Independent Contractors

Individuals or businesses that provide goods or services to another entity under terms specified in a contract, but are not considered employees.

Job Classification

The categorization of positions within an organization based on duties, responsibilities, and the level of authority.

Better Benefits

Enhanced advantages or perks provided to employees, beyond statutory requirements, aimed at improving their work-life balance and job satisfaction.