​Use the Following Information for Question

question 37

Multiple Choice

​Use the following information for question
Transcendent Technologies is deciding between developing a complicated thought-activated software,or a simple voice-activated software.Since the thought-activated software is complicated,it only has a 30% chance of actually going through to a successful launch,but would generate revenues of $50million if launched.The voice-activated software is simple and hence has a 80% chance of being launched but only generates a revenue of $10million.The complicated technology costs 10million,whereas the simple technology costs 2million.
-​If the firm learns that the complicated technology can be made more stable with a few tweaks increasing the cost by 5.5million and increasing the probability of a launch to 50%.Is it worth for the firm to invest the $500,000 in tweaks?

• A)​No,because it decreases the total expected value
• B)Yes,because it increases expected value
• C)No,because it increases risk
• D)​Yes,because tweaking is good

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Definitions:

Control Process

The systematic effort within an organization to guide activities towards meeting goals and objectives, typically involving establishment, monitoring, and adjusting of standards.

Performance Objectives

Specific goals and targets set for employees or departments to achieve, linked to the overall strategic objectives of an organization.

Secure Adequate Financing

The act of obtaining sufficient funds or capital necessary to support operations, projects, or investments.

Subgroups Consistency

The degree to which the policies, practices, and procedures applied to various subgroups within an organization are uniform and equitable.