Which One of the Following Is an Example of a "Flexibility

question 4

Multiple Choice

Which one of the following is an example of a "flexibility" option?

• A) A company has an option to invest in a project today or to wait a year.
• B) A company has an option to close down an operation if it turns out to be unprofitable.
• C) A company agrees to pay more to build a plant in order to be able to change the plant's inputs and/or outputs at a later date if conditions change.
• D) A company invests in a project today to gain knowledge that may enable it to expand into different markets at a later date.
• E) A company invests in a jet aircraft so that its CEO, who must travel frequently, can arrive for distant meetings feeling less tired than if he had to fly commercial.

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Definitions:

Bronchitis

An inflammation of the bronchi (large and medium-sized airways) in the lungs that causes coughing and breathing difficulties.

Epiglottis

A flap of cartilage located at the base of the tongue, which covers the windpipe during swallowing to prevent food from entering the lungs.

Flap-Like Structure

An anatomical feature resembling a flap, often found in animals and plants, that serves various biological functions.

Lung Inflammation

A condition characterized by swelling, irritation, and often infection in the lungs, which can lead to difficulty breathing.