Which One of the Following Is an Example of a Flexibility

question 18

Multiple Choice

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

• A)A company has an option to invest in a project today or to wait a year.
• B)A company has an option to close down an operation if it turns out to be unprofitable.
• C)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.
• D)A company invests in a project today to gain knowledge that may enable it to expand into different markets at a later date.

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Definitions:

Strategic Decisions

Major choices or judgments made by an entity that significantly influence its direction and affect its overall success.

Monitoring

Monitoring involves the continuous observation, checking, and systematic assessment of processes or activities over a period of time for the purpose of ensuring compliance with standards or progress towards objectives.

Yelp Effect

The impact of user-generated online reviews (particularly on Yelp) on the reputations and business outcomes of establishments, especially restaurants and local services.

Physicians

Medical professionals who diagnose and treat illness, disease, and injuries.