Which One of the Following Is NOT a Real Option

question 8

Multiple Choice

Which one of the following is NOT a real option?

• A) The option to expand production if the product is successful.
• B) The option to buy shares of stock if its price is expected to increase.
• C) The option to expand into a new geographic region.
• D) The option to abandon a project if cash flows turn out to be lower than expected.
• E) The option to switch the type of fuel used in an industrial furnace to lower the cost of production.

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Definitions:

False Memory

A phenomenon where a person recalls something that did not happen or recalls it differently from the way it actually happened.

Mood-Congruent Memory

The tendency of individuals to recall memories that are consistent with their current mood.

Chunking

A memory strategy that involves organizing information into manageable and meaningful units or chunks, facilitating easier recall.

Spacing Effect

Refers to the phenomenon where learning is more effective when study sessions are spaced out over time rather than conducted in one long session.