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.

---

Definitions:

Appellate Court

A court that reviews and potentially revises the decisions of a lower court, focusing on errors of law rather than fact.

Venue

The place or geographic location where a legal case is tried or a contract is to be executed.

County

An administrative or political subdivision of a state in the United States, responsible for local government functions.

Tennessee

A U.S. state located in the southeastern region, known for its music heritage, particularly in the genres of country, blues, and rock 'n' roll.