The amount of corporate investment is typically at its lowest in the:
A)Conceptualization phase.
B)Planning phase.
C)Execution phase.
D)Termination phase.

Question

Quizplus · Accepted Answer

In the conceptualization phase, the project is in its preliminary stages of idea generation and feasibility analysis. At this stage, there is little certainty about the potential success of the project, and hence, some uncertainty about its profitability. Due to the high risk associated with the project, corporate investment is generally at its lowest during this phase. As the project progresses through its various stages (planning, execution, and termination), the level of investment generally increases as more information becomes available about its potential success.

The Amount of Corporate Investment Is Typically at Its Lowest