After Seeing the Price of the Stock Decline Precipitously and the Stock

question 34

Multiple Choice

After seeing the price of the stock decline precipitously and the stock exchange declaring the stock as a junk investment, Jason buys significantly more number of shares in that company hoping that dollar cost averaging will help when the price rises. This is an example of which of the following barriers to good ethical judgement?

• A) Illusion of control
• B) Escalation of commitment
• C) Illusion of morality
• D) Confirmation trap

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Definitions:

Moral Leadership

A style of leadership that is based on ethical principles and values, aiming to influence others through moral authority.

Capabilities

The skills, expertise, and resources that an organization or individual has, which enable them to achieve their objectives and perform activities.

Emotional Intelligence

The ability to recognize, understand, and manage one's own emotions and those of others, which is crucial for effective interpersonal relations and leadership.

Personal Competency

The range of one's abilities and skills that contribute to achieving high performance and success in personal or professional tasks.