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:

Survival

The act of remaining alive or in existence, especially after facing life-threatening conditions or situations.

Developmental Psychology

A branch of psychology that studies the growth and changes in human behavior and mental processes throughout the lifespan.

Lifespan

The duration of time that an organism, individual, or object exists, from its birth or creation to its death or expiration.

Developmental Changes

Refers to the physical, cognitive, and emotional growth that occurs throughout a person’s lifespan.