Which of the Following Is Not One of the Potential

question 32

Multiple Choice

Which of the following is not one of the potential approaches to quantifying the expected benefits of IT initiatives?

• A)Real option theory.
• B)Simulation.
• C)External benchmarks.
• D)Expert opinion.
• E)Performance futures theory.

---

Definitions:

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Shutdown Decisions

Decision-making processes within a company regarding when to cease operations temporarily or permanently due to various reasons, such as unprofitability.

Capital

Refers to financial assets or resources that businesses use to fund their operations and growth.

Sunk-cost Fallacy

The misconception of valuing continued investment in a project or decision based on the already incurred costs, irrespective of future benefits.