Which of the Following Best Describe the Term Managerial Options

question 114

Multiple Choice

Which of the following best describe the term managerial options or real options.

• A) The percentage change in operating cash flow relative to the percentage change in quantity sold.
• B) The sales level that results in a zero NPV.
• C) Costs that do not change when the quantity of output changes during a particular time period.
• D) The possibility that errors in projected cash flows lead to incorrect decisions.
• E) Opportunities that managers can exploit if certain things happen in the future.

---

Definitions:

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.

Illusory Correlation

A cognitive bias where a person perceives a relationship between variables (typically people, events, or behaviors) even when no such relationship exists.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together. A positive correlation indicates that as one variable increases, the other does too, and vice versa for a negative correlation.

Correlation Coefficients

Statistical measures that quantify the degree to which two variables are related, indicating the strength and direction of a relationship.