Which of the Following Is NOT a Real Option

question 10

Multiple Choice

Which of the following is NOT a real option?

• A) The option to buy shares of stock if its price goes up.
• B) The option to expand into a new geographic region.
• C) The option to abandon a project.
• D) The option to switch the type of fuel used in an industrial furnace.
• E) The option to expand production if the product is successful.

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Definitions:

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed by the party to be charged, in order to be legally enforceable.

Real Property

Pertains to land and anything permanently attached to it, such as buildings, including the rights associated with ownership of land.

Uniform Commercial Code

A detailed collection of regulations for overseeing commercial activities in the USA, aimed at standardizing business statutes nationwide.

Sale of Goods

A commercial transaction in which a seller transfers or agrees to transfer goods to a buyer for a monetary consideration, under terms and conditions.