All of the Following Statements Relating to Escalating Commitment Are

question 120

Multiple Choice

All of the following statements relating to escalating commitment are correct EXCEPT:

• A) the tendency to escalate commitments often outweighs the willingness to disengage from them.
• B) decision makers may rationalize negative feedback resulting from an escalated commitment as a temporary condition.
• C) an escalated commitment may result in a decision maker protecting his or her ego by not admitting that the original decision was a mistake.
• D) once it is determined that a chosen course of action is "not working," decision makers will re-group and select a different course of action.
• E) decision makers may characterize any negative results from an escalated commitment as a "learning experience" can be overcome with added future effort.

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Definitions:

FASB

Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, typically recorded as an asset on the balance sheet.

Accounts Payable

An obligation to a lender recorded on an open account, typically relating to the acquisition of goods and services.

Creditor

A creditor is an entity (person or institution) that lends money or extends credit to another entity, with the expectation of being repaid in the future, possibly with interest.