The Relationship Between Commitment and Strategic Options May Be Best

question 57

Multiple Choice

The relationship between commitment and strategic options may be best described as:

• A)Commitments increase the value of real options
• B)By committing to a set of options,a firm can reconcile two sources of value: value from deterring competitors and value from real options
• C)Making commitments inevitably involve giving up options
• D)The two reside in different realms of analysis: commitments can be analyzed using game theory;real options can be analyzed using financial theory

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Definitions:

Self-Handicapping

Placing obstacles in the way of one's own success to protect self-esteem from a possible future failure.

Self-Handicapping

A cognitive strategy where an individual sets up excuses or obstacles before a performance to have external factors to blame in case of failure.

Possible Selves

Images of what the self might become in the future.

Trait Self-Esteem

The enduring sense of worth or value that one attributes to oneself as a consistent aspect of their personality.