The Tendency to Stick to an Ineffective Course of Action

question 7

Multiple Choice

The tendency to stick to an ineffective course of action when it is unlikely that the bad situation can be reversed is

• A) escalation of failure
• B) escalation of action
• C) escalation of commitment
• D) escalation of control
• E) escalation of change

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Definitions:

Interest Cost

The cost incurred by an entity for borrowing funds, typically reflected as an expense in the income statement.

Pension Expense

The annual cost recognized by an employer for maintaining a retirement plan for its employees.

Actuarial Assumptions

Estimates used to calculate the present and future financial obligations of pension plans and insurance policies, often involving life expectancy and interest rates.

Present Values

The current value of a future amount of money or stream of cash flows, discounted at a particular rate of interest.