Corporate Ventures That Use Real Options Logic in Decision Making

question 4

True/False

Corporate ventures that use real options logic in decision making tend to keep total investment low in order to minimize the downside risk of a project.

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Definitions:

CEO

An abbreviation for Chief Executive Officer, the highest-ranking person in a company or other institution, ultimately responsible for making managerial decisions.

Major Decisions

Significant choices or judgments that can have a profound impact on an individual's or organization's direction and outcomes.

Contingent Rewards

Rewards that are given based on the achievement of specific criteria or the fulfillment of certain conditions.

Clarifies Expectation

The process of making expectations clear and understandable to all parties involved.