His family is much respected for their success in commercial and service undertakings. Seeking diversification, the family decided to enter the manufacturing sector. Gaining the acquaintance of an engineer and plant manager, whom we will call Y, the family agreed on a joint undertaking and set up a factory. Unfortunately, X’s family had no knowledge of production, and their company incurred heavy losses. In the resulting confrontation between X’s family and Y, the latter suggested they dissolve the enterprise. X refused this decisively; he and his family believed their name would be damaged if they aban- doned the factory. Although the project had burdened them with terrible debts, they feared that the damage to their reputation in the business community would outweigh the economic relief they could obtain by giving it up.