Which One of the Following Is an Example of a "Flexibility

question 11

Multiple Choice

Which one of the following is an example of a "flexibility" option?

• A) A company has an option to close down an operation if it turns out to be unprofitable.
• B) A company agrees to pay more to build a plant in order to be able to change the plant's inputs and/or outputs at a later date if conditions change.
• C) A company invests in a project today to gain knowledge that may enable it to expand into different markets at a later date.
• D) A company invests in a jet aircraft so that its CEO, who must travel frequently, can arrive for distant meetings feeling less tired than if he had to fly commercial.
• E) A company has an option to invest in a project today or to wait a year.

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Definitions:

Negligent Hiring

A legal claim made against an employer for hiring an individual who is unfit or dangerous, which results in harm or damage.

Hallucinogenic Drugs

Substances that induce alterations in perception, mood, and thought, often causing visual or auditory hallucinations.

Air Traffic Controller

A professional responsible for directing aircraft safely in the sky and on the ground at airports, ensuring orderly and efficient traffic flow.

Respondeat Superior

A legal doctrine holding that an employer is responsible for the actions of employees performed within the scope of their employment.