A golf course/property developer buys twice as much land as is needed to build an 18 hole golf course and housing development so that, if things go very well, a second 18 hole golf course and
Housing project can be added to the project. The developer is prepared to exercise the:
A) Option to default.
B) Option to expand.
C) Option to abandon.
D) Option to wait.
E) Option to rebuild.

Question

Quizplus · Accepted Answer

The developer's decision to buy twice as much land as is needed shows that they are prepared to exercise an option to expand if things go well. This means that if the development is successful, they can add a second 18 hole golf course and housing project. Therefore, the best choice for the developer is option to expand.

A Golf Course/property Developer Buys Twice as Much Land as Is