Which Three of the Following Accurately Relate to the Real

question 34

Multiple Choice

Which three of the following accurately relate to the real options approach?

• A) It takes future managerial flexibility into account.
• B) It allows managers to amend decisions in the light of future events.
• C) It differs from the NPV approach, which does not offer future flexibility.
• D) It does not allow managers to expand the plans in future.

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Definitions:

Uttering

The crime of offering a forged instrument to another person, knowing it to be forged.

Check 21 Act

A law that makes check clearing much quicker by the use of a substitute check in place of the original check for electronic check processing.

Electronic Transfer

The digital movement of funds from one account to another, either within the same financial institution or between different ones.

Beneficiary

An person or entity designated to receive benefits or assets under a legal arrangement or instrument, such as a will, trust, or insurance policy.