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Sloan [31]
3 years ago
14

5. Introduction to real options Consider the following statement about real options: Sometimes real options can give managers th

e 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 Which type of real option allows the output and/or inputs in the production process to be altered, depending on how market conditions change during a project’s life? Abandonment option Timing option Flexibility option Expansion option Consider the following example: Smoltz Motors has plants around the country that specialize in specific models of cars. Smoltz has determined that lower demand has led the firm’s inventory of SUVs to be too high. Smoltz wants to stop production for its SUVs and focus on its sedans. This example describes a real option to .
Business
1 answer:
klasskru [66]3 years ago
4 0

Answer and Explanation:

The given statement is true as the real options would provide the managers the flexibility for deciding to invest or wait so that it would make a more computed decision

The real option that permits the input or output in the production process that could vary so it would be investment timing option as here the timing plays a very vital role

The given situation represent a real option to expand as the firm would pursue the extra expansion contracts

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Kermit calculated his total asset turnover to be 1.13. this tells kermit that:
Vikki [24]
Since Kermit calculated his total asset turnover to be 1.13, this tells Kermit that <span>every dollar of assets generates $1.13 in sales.

</span>Please note that it is useful to add the options provided with the question, in order to get an accurate answer and have your question answered quicker.

Hope this helps!!
3 0
4 years ago
Multiple Choice Question 146 Marigold Corp. assembled the following information in completing its March bank reconciliation: Bal
pishuonlain [190]

Answer:

reduce its cash account by $1875.

reduce its cash account by $410.

Explanation:

As for the information provided,

When we tally the cash balance with that of bank balance,

Outstanding checks which were already deducted in cash book will be added as yet outstanding and payment not made.

= + 3,025

Deposits in transit were already added in cash book, although yet not added to bank balance, thus deducted

= - 4,900

= +3,025 - 4,900 = - $1875

This means cash will be reduced by $1,875

Further NSF check is already added in cash but not yet added in bank = - $310

Further bank has deducted charges but in cash book not recorded thus it will be deducted now = - $100

= -$310 - $100 = - $410

7 0
3 years ago
Vernon spends the following percentages of his budget on the following goods: 23 percent on good A, 11 percent on good B, 1 perc
bearhunter [10]

Answer:

A) good A.

Explanation:

Good A represents the highest percentage of Vernon's budget, so naturally any price change related to good A will affect Vernon greatly and may cause him to change the quantity purchased of that good. Even the price of substitutes or complements of that good will have a large impact in Vernon's purchase decisions.

6 0
3 years ago
GM creates a separate website for each of its car models (e.g., chevrolet). This reflects which type of multi-branding strategy
Viefleur [7K]

The type of multi-branding strategy that GM creates by using a separate website for each of its car models is known as the house of brands.

<h3>What is a multi-branding strategy?</h3>

A multi-branding strategy involves using a portfolio of products with different brand names by the same company.

Multi-branding is a  branding strategy that involves using two or more brand names to market the same product to different audiences.

Thus, the type of multi-branding strategy that GM creates by using a separate website for each of its car models is known as the <u>house of brands</u>.

Learn more about branding strategies at brainly.com/question/7139810

3 0
2 years ago
Randy and Donald were property developers, and they decided to construct a condominium in a certain neighborhood. Jim, who owned
Andre45 [30]

Answer: incidental beneficiary

Explanation:

An incidental beneficiary refers to an individual who isn't a party to a contract but later becomes a third party beneficiary who is unintended to the contract.

It should be noted that the incidental beneficiary has no rights that are enforceable under the contract. With regards to the question, Jim suffered losses as a result, but he had no rights in the contract because he was an incidental beneficiary.

5 0
3 years ago
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