KT Enterprises has expanded its operations into a new field,which is the production of everyday dinnerware.If this project goes well,the firm has the option to expand its production into fine china.What type of option is this?

Question

Quizplus · Accepted Answer

The option to expand production into fine china is a strategic option, as it involves making long-term decisions about the direction of the company's growth and the allocation of resources. A financial option would involve making decisions about investments or financing, while put options and call options are typically used in investment or trading contexts. Intangible options refer to options that are not physical or financial in nature, such as options related to intellectual property or brand recognition.

KT Enterprises Has Expanded Its Operations into a New Field,which