Which of the Following Is a Real Option with Respect

question 112

Multiple Choice

Which of the following is a real option with respect to a capital budgeting decision?

• A) A call option on the company's stock.
• B) A put option on securities sold to finance the project.
• C) An option to expand the scale of the project.
• D) An option to purchase land that will be used for a manufacturing facility.

---

Definitions:

Cultural Backgrounds

The cultural settings and environments in which individuals are raised, including traditions, practices, beliefs, and languages.

Development

The process of growth and change that a person goes through over a lifetime, encompassing physical, cognitive, and psychological development.

Personal Values

Are core beliefs or ideals that guide an individual's behavior, decision-making, and lifestyle choices.

Environment

The environment or circumstances in which a person, animal, or plant exists or functions.