How Can Managers Create Real Options? Briefly Explain

question 46

Essay

How can managers create real options? Briefly explain.

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Definitions:

"As Is"

A term specifying that an item is being sold in its current condition, with all faults and without warranty, typically in a sales contract.

"With All Faults"

A term in contracts indicating that the buyer accepts the item as is, including all defects.

Express Warranty

An express warranty is an explicit guarantee made by a seller regarding the quality, functionality, or performance of a product, which forms part of the contract of sale.

"As Is"

The term "as is" denotes a condition of sale in which the buyer accepts an item in its current state, with all faults and without warranty, implying the buyer cannot hold the seller responsible for any defects.