Definition
A white elephant is an expression used to describe an item that is considered to be a burdensome and costly possession that the owner cannot easily get rid of. The term originates from Siam (modern-day Thailand) where rare albino elephants were regarded as sacred and belonged to the king. Legend suggests that the king would bestow a white elephant upon a courtier who had fallen out of favor, knowing that the exorbitant cost of maintaining the sacred creature would lead to the courtier’s financial collapse.
Examples
- Real Estate: A large, expensive property that is difficult to maintain and sell can become a white elephant for the owner due to high maintenance costs and low demand.
- Corporate Projects: An underperforming, over-budget business project that consumes resources without yielding expected results can be deemed a white elephant.
- Gifts: Lavish and impractical gifts that are hard to re-gift or return may also be colloquially called white elephants.
Frequently Asked Questions
Q1: What does the term “white elephant” signify?
A1: The term signifies a possession that is more trouble than it is worth, often being expensive to maintain and difficult to dispose of.
Q2: Where did the concept of a white elephant originate?
A2: The concept originated in ancient Siam (Thailand), where white elephants were considered sacred and property of the king. Disfavored courtiers were given these burdensome gifts.
Q3: Can a white elephant have any positive value?
A3: While a white elephant can hold sentimental or unique value, its burden usually overshadows any benefits. It is typically referenced with a negative connotation.
Q4: How is the term “white elephant” used in modern contexts?
A4: In modern contexts, it can refer to business projects, properties, or other ventures/assets that are expensive and difficult to manage but bring little to no return.
Q5: Is there any difference between a white elephant and an albatross?
A5: Yes, while both are metaphors for burdens, a white elephant usually emphasizes financial strain and maintenance troubles, whereas an albatross refers more broadly to a persistent problem or curse.
- Albatross (noun): A metaphor for a significant psychological or emotional burden that impedes progress.
- Boondoggle (noun): A project that wastes time and money but appears to have value.
- Dead Weight (noun): A heavy or burdensome load; in business, it refers to unproductive resources or personnel.
- Money Pit (noun): A house or other property that requires constant and extensive financial investment.
- Millstone (noun): Refers to something that is unwanted and cumbersomely burdensome, often impeding one’s progress.
Online References
- Investopedia: White Elephants in Business
- Merriam-Webster: Definition of White Elephant
- Wikipedia: White elephant
Suggested Books for Further Studies
- White Elephants: On Yard Sales, relationships, and finding what was missing by Katie Haegele
- The Elephant in the Room: Seeing the elephant in our lives by Edward Hodapp
- Why Do Elephants Have Big Ears? – And Other Puzzles in Nature by Chris Lavers
Fundamentals of “White Elephant”: Business Law Basics Quiz
### What is a white elephant in business terms?
- [ ] A unique asset with high stakeholder satisfaction.
- [x] A burdensome project or asset with high costs but low returns.
- [ ] A profitable business venture.
- [ ] An exceptional business asset.
> **Explanation:** In business terms, a white elephant is an asset or project that incurs high costs and offers little return on investment, making it burdensome to the company.
### Where did the concept of "white elephant" originate?
- [x] Ancient Siam (Thailand)
- [ ] Ancient Greece
- [ ] Medieval England
- [ ] Ancient Egypt
> **Explanation:** The concept originated in ancient Siam (modern-day Thailand), where rare albino elephants were regarded as sacred and were often used by the king to ruin disfavored courtiers by bestowing these costly creatures upon them.
### Which of the following is an example of a white elephant?
- [ ] A cost-saving technology implementation.
- [ ] A high-demand real estate property.
- [x] An underperforming corporate project consuming resources without expected benefits.
- [ ] A successful business expansion.
> **Explanation:** An underperforming corporate project that consumes resources without yielding the expected benefits is a classic example of a white elephant.
### How can a white elephant impact business finances?
- [ ] By generating high revenue.
- [x] By incurring high maintenance costs and resource consumption.
- [ ] By decreasing overall expenses.
- [ ] By improving market competitiveness.
> **Explanation:** A white elephant can negatively impact business finances by incurring high maintenance costs and consuming resources without providing proportional benefits.
### Can a white elephant have any intrinsic sentimental value?
- [x] Yes, it may still hold sentimental or unique value despite its burdens.
- [ ] No, it holds no sentimental value at all.
- [ ] Only in rare cases.
- [ ] Only if it is profitable.
> **Explanation:** While a white elephant is primarily referenced for its financial burden, it may still hold sentimental or unique value despite the troubles it brings.
### What is a related term that describes a similar business burden?
- [ ] Profit center
- [x] Boondoggle
- [ ] Goldmine
- [ ] Asset
> **Explanation:** A related term that describes a similar business burden is "boondoggle," which refers to a project that wastes time and money but appears to have some value.
### How is the term "money pit" different from a white elephant?
- [x] A money pit requires continuous financial investment.
- [ ] A money pit is highly profitable.
- [ ] A money pit is easy to dispose of.
- [ ] A money pit involves no significant financial burden.
> **Explanation:** A money pit specifically refers to something, such as a house, that requires continuous and extensive financial investment, often without significant return, slightly different from a white elephant but similarly burdensome.
### What do holders of white elephants often experience?
- [ ] Financial prosperity
- [x] Financial strain and burden
- [ ] Market expansion
- [ ] Increased shareholder value
> **Explanation:** Holders of white elephants often experience financial strain and burden due to the high costs and low returns involved in maintaining these troublesome assets.
### In what scenario might a "white elephant gift exchange" be held?
- [x] Social gatherings where participants exchange humorous or impractical gifts.
- [ ] Business seminars to swap valuable assets.
- [ ] Corporate meetings to exchange high-value items.
- [ ] Formal events with significant monetary exchanges.
> **Explanation:** A "white elephant gift exchange" is typically held at social gatherings where participants exchange humorous or impractical gifts in a light-hearted manner.
### Why might businesses seek to avoid white elephants?
- [ ] They are inexpensive.
- [x] They can drain resources and capital with little benefit.
- [ ] They provide surprising levels of utility.
- [ ] They help in increasing profits.
> **Explanation:** Businesses seek to avoid white elephants because they can drain resources and capital while providing little to no benefit, thus imposing a financial burden.
Thank you for exploring the comprehensive nuances of the “White Elephant” concept. Continue honing your understanding of business phrasing and financial impacts through these challenging quizzes and further recommended readings!
