Static factors that may play a role in the decision to terminate a project early include company image and the presence of high sunk costs.

Question

Quizplus · Accepted Answer

Both company image and high sunk costs are considered static factors in project termination decision-making. Company image refers to the reputation of the company and its impact on stakeholders such as customers, investors, and employees. If a project is causing significant damage to the company's image, it may be terminated early. High sunk costs, on the other hand, refer to the resources that have already been invested in the project and cannot be recovered if the project is terminated. The presence of high sunk costs may make it difficult to justify continuing with the project if it is no longer viable or aligned with the company's goals.

Static Factors That May Play a Role in the Decision