A real option that allows a company to respond more easily to changes in business conditions is known as a(n):
A)expansion option.
B)investment timing option.
C)flexibility option.
D)None of the above

Question

Quizplus · Accepted Answer

A flexibility option is a real option that allows a company to respond more easily to changes in business conditions. It gives the company the ability to change its strategic course of action in response to new information or events in the market, which can enhance its overall flexibility and competitiveness. Expansion options and investment timing options are also real options, but they do not necessarily offer the same degree of flexibility as a flexibility option.

A Real Option That Allows a Company to Respond More