Viewing Strategy as a Portfolio of Options Rather Than a Portfolio

question 65

Multiple Choice

Viewing strategy as a portfolio of options rather than a portfolio of investments relies upon the central idea that:

• A)Strategy needs to reconcile direction and flexibility in an uncertain environment
• B)"All or nothing" strategic projects can be such costly mistakes as to be fatal to the firm
• C)The advantage of an option follows from the potential to amend or stop a strategic project during the development process
• D)All of the above

---

Definitions:

Borrowers

Individuals or entities that take funds from a lender with the intention of paying back the borrowed amount plus interest.

Downsloping

A term describing a downward trend or decrease, often used in economics to refer to declining prices or demand curves that slope downwards as price increases.

Nominal Interest

is the stated interest rate of a loan or financial product, not adjusted for inflation, representing the face value of the interest charged or earned.

Capital Good

Long-lasting goods that businesses use to produce goods and services, contributing to their productive capacity.