One of the Pitfalls of Real Options Analysis Is That

question 88

Multiple Choice

One of the pitfalls of real options analysis is that managers may have an incentive and know-how to game the system and back-solve a formula to get a proposal approved.This can give rise to

• A) managerial conceit.
• B) the illusion of control.
• C) escalation of commitment.
• D) agency problems.

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Definitions:

Semiconductor Industry

A sector of the economy that produces semiconductor devices and materials used in electronic components and systems.

Encyclopedia

a comprehensive reference work containing information on a wide range of subjects or specialized topics.

Analyst

A professional who systematically examines data or information to identify patterns, trends, or insights.

Secondary Research

The process of gathering information from existing sources, as opposed to collecting data directly through primary research.