Question

Consider the following statement about real options: Sometimes real options can give managers the flexibility to decide to invest in a project or wait to make a more calculated decision. True or False: The preceding statement is correct. True False

Answer 1

Answer:

True

Explanation:

True

A real option is consider as a choice given to manager to decide on the opportunity that can be come for business. it is basically concern on the future growth of the company. it include what should be decision on the basis of current scenario of the business for betterment of the future growth.

it include following option:

$\rightarrow$ expand option

$\rightarrow$ abandoned option

$\rightarrow$ wait option

$\rightarrow$ switch option

$\rightarrow$ contract option.