Which Situation Best Illustrates the Escalation of Commitment

question 28

Multiple Choice

Which situation best illustrates the escalation of commitment?

• A)A marketing manager fails to state the disadvantages of a product,and only states the positive benefits of that product.
• B)A marketing manager does not give credit to a team member whose idea was instrumental for the product development.
• C)A marketing manager makes decisions using a majority voting technique,and does not listen to the minority viewpoint.
• D)A marketing manager continues to promote a specific brand,despite clear evidence that the brand is losing market share to competitors.

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Definitions:

Net Profit Margin

A financial performance metric that shows the percentage of net income derived from revenue.

Earnings Per Share

A financial metric that represents the portion of a company's profit allocated to each outstanding share of common stock, indicating its profitability.

Dividend Yield

A ratio indicating the annual dividends a firm pays out compared to its stock price.

Return on Equity

A measure of financial performance that calculates the amount of net income returned as a percentage of shareholders' equity.