Real Options Analysis (ROA)is an Investment Analysis Tool from the Field

question 37

Multiple Choice

Real options analysis (ROA) is an investment analysis tool from the field of finance.When applied to entrepreneurship,it suggests a path that companies can use to manage the ________ associated with launching ________ ventures.

• A) certainty; large
• B) risk; stable
• C) uncertainty; new
• D) interests; new

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Definitions:

Accounting Profit

The profit a company has after deducting all its expenses from its total revenue.

Verizon Wireless

A major American telecommunications company known for providing wireless products and services.

Implicit Cost

The opportunity cost incurred by using assets, resources, or funds for a specific purpose rather than the next best alternative.

Competitive Rate

Pricing that is on par or better than what is offered by competitors in the market, often used to attract customers.