Which of the Following Is NOT a Real Option

question 10

Multiple Choice

Which of the following is NOT a real option?

• A) The option to buy shares of stock if its price goes up.
• B) The option to expand into a new geographic region.
• C) The option to abandon a project.
• D) The option to switch the type of fuel used in an industrial furnace.
• E) The option to expand production if the product is successful.

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Definitions:

Poorly Defined

Referring to a concept, term, or condition that lacks clear explanation or boundaries, leading to ambiguity and misunderstanding.

Benefit From Conservation

The advantages gained from the responsible management and preservation of natural resources, including environmental sustainability and potential economic savings.

Resources

Inputs used in the production of goods and services, including land, labor, capital, and entrepreneurship.

Unprofitable

Lacking in profit or not resulting in financial gain.