A company called Techno Plus LLC experienced a failed acquisition, but the managers of the company were hesitant to end the venture as they had already invested too much time, finances, and effort into it. They presumed that everything would work out with a little more money and time. This attitude of the managers of Techno Plus LLC can be termed _________.

Question

Quizplus · Accepted Answer

The attitude of the managers of Techno Plus LLC can be termed as sunk cost fallacy, which refers to the fallacy of continuing to invest in a failing project or venture simply because of already invested resources, rather than accurately assessing the potential for future success. This is a common cognitive bias in decision-making.

A Company Called Techno Plus LLC Experienced a Failed Acquisition