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

question 11

Multiple Choice

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

• A) A company has an option to close down an operation if it turns out to be unprofitable.
• B) 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.
• C) A company invests in a project today to gain knowledge that may enable it to expand into different markets at a later date.
• D) 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.
• E) A company has an option to invest in a project today or to wait a year.

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Definitions:

Anal Stage

The second stage in Freud's psychosexual development theory, occurring roughly between the ages of 18 months and three years, where the focus of pleasure is on the anus.

Psychosexual Stages

The stages of psychological development theorized by Freud, through which a child progresses from infancy to adulthood, each characterized by a different focus of libido (sexual energy).

Fixated

A psychological term referring to the state of being obsessively focused or attached to an emotional experience or person from one's past.

Oral Stage

The first of Freud's psychosexual development stages, occurring from birth to about 18 months of age, where pleasure centers on the mouth.