Cindy Has Pumped Over $850,000 into a Small Business That

question 104

Multiple Choice

Cindy has pumped over $850,000 into a small business that has consistently lost money every year it has been open.She reasons that she has to continue investing time and money in her business because she's "already put so much into it" (instead of selling the business and cutting her losses) .Cindy's reasoning illustrates:

• A)rational economic theory.
• B)the conjunction fallacy.
• C)the sunk-cost fallacy.
• D)the law of demand.

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Definitions:

Competitive Advantage

Competitive advantage refers to the attributes that allow an organization to outperform its competitors by offering greater value to customers or operating more efficiently.

Operational Excellence

The execution of the business strategy more consistently and reliably than the competition, involving continuous improvement in processes and achieving high customer satisfaction.

Competitive Advantage

An attribute or combination of attributes that allows an organization to outperform its competitors, including cost structure, product quality, brand, customer service, or technology.

Home-Based Businesses

Enterprises that are operated from the owner's home, often utilizing online and digital tools for operations and marketing.