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Briefly Explain What Is Meant by a Real Option in Capital

question 79

Essay

Briefly explain what is meant by a real option in capital budgeting.Give two concrete examples.


Definitions:

Frederick Taylor

was an American mechanical engineer who sought to improve industrial efficiency and is known as the father of scientific management.

Administrative Principles

Guidelines or rules that form the basis of administrative practices designed to efficiently organize and manage organizations.

Hawthorne Studies

A series of experiments on workplace productivity that highlighted the impact of social relations and worker satisfaction.

Worker Performance

The degree to which an employee accomplishes tasks and fulfills objectives efficiently and effectively, often evaluated against predetermined standards.

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