When GM continued with a cost cutting strategy that streamlined their operations and focused on SUVs and trucks while losing 82 billion dollars they most likely reflected:
A) risk aversion.
B) escalation of commitment.
C) entrapment.
D) the gambler's fallacy.

Question

Quizplus · Accepted Answer

The fact that GM continued with their cost cutting strategy despite losing a significant amount of money reflects an escalation of commitment. This refers to the tendency of individuals or organizations to stick to a failing course of action even in the face of mounting losses, with the hope that things will eventually turn around.

When GM Continued with a Cost Cutting Strategy That Streamlined