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Mandla Purchases Shares in a Public Company and Refuses to Sell

Question 14

Multiple Choice

Mandla purchases shares in a public company and refuses to sell them even after repeated drops in the original price he paid for the shares.Mandla has decided to purchase more of the shares in anticipation of making a profit, and has decided to keep the shares in the face of increasing losses.Mandla is suffering from


A) organisational delusion.
B) problem misidentification.
C) escalation of commitment.
D) groupthink.
E) suboptimising.

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