Firms Spend an Increasing Amount of Time Evaluating Real Options

question 82

Multiple Choice

Firms spend an increasing amount of time evaluating real options, which are:

• A)Options on real assets such as an option to abandon
• B)Call and put options traded on organized exchanges
• C)Call options such as warrants and convertible bonds
• D)Put options such as held by shareholders of a firm with financial leverage

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Definitions:

Internal Locus

A belief system where an individual attributes their successes and failures to their own actions and decisions.

Peak Communication

Communication characterized by complete openness and honest self-disclosure. It happens rarely.

External Locus

A psychological orientation where an individual believes that their destiny or outcomes are controlled by external forces or environmental factors.

Attitude-Improving Feedback

Feedback given with the intent to positively influence or change someone's attitude or perception towards a particular subject or activity.