If an Activity Can Be Split,only the Functional Portion of the Original

question 91

True/False

If an activity can be split,only the functional portion of the original activity needs to be accomplished for the project to be fully completed.

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Definitions:

Abandonment Option

The abandonment option is a right, but not the obligation, to abandon an investment or project if it becomes unprofitable or risks exceed anticipated benefits.

Independent

Free from outside control or not depending on another's authority or subject to another's influence.

Positively Correlated

This term describes two variables that move in the same direction; as one variable increases, the other variable increases as well, and vice versa.

Real Option

An analytical method for valuing flexibility in decision-making, emphasizing the ability to modify plans in response to changing market conditions.