Companies will occasionally continue to support strategies which are failing to achieve their goal and this can be termed as ___________.
A) Risk Averse behavior
B) Risk Seeking behavior
C) Escalating commitment
D) Risk mitigation

Question

Quizplus · Accepted Answer

Escalating commitment refers to the decision to continue investing in a failing strategy in the hope that it will eventually turn around, even when evidence suggests otherwise. This behavior can stem from a desire to avoid admitting failure or facing negative consequences, and can ultimately lead to significant losses. Risk averse behavior and risk mitigation are focused on avoiding or minimizing risk, while risk seeking behavior involves taking on more risk in pursuit of greater rewards. None of these fully capture the concept of escalating commitment.

Companies Will Occasionally Continue to Support Strategies Which Are Failing