In Their Relationship,Clyde Is Concerned with Maintaining an Equal Ratio

question 26

Multiple Choice

In their relationship,Clyde is concerned with maintaining an equal ratio of rewards and costs,whereas Barb is concerned with being responsive to Clyde's needs.How do Clyde and Barb each view their relationship?

• A) Clyde views their relationship as a reciprocal relationship,whereas Barb views it as an exchange relationship.
• B) Clyde views their relationship as an exchange relationship,whereas Barb views it as a communal relationship.
• C) Clyde views their relationship as a communal relationship,whereas Barb views it as a passionate relationship.
• D) Clyde views their relationship as a passionate relationship,whereas Barb views it as a companionate relationship.

---

Definitions:

Real Option

A managerial flexibility embedded in investment projects, representing the right, but not the obligation, to undertake certain business decisions, such as expanding, abandoning, or delaying a project.

Expansion Option

A strategic investment choice that gives a company the option but not the obligation to expand its operations or invest in new projects if market conditions are favorable.

Monte Carlo Simulation

A computational technique that uses random sampling to obtain numerical results, often used to assess risk and uncertainty in financial and project management.

Subjective Estimates

Assessments or judgments made that rely on personal feelings, tastes, or opinions rather than external observable phenomena.