Corporate ventures that use real options logic in decision making tend to keep total investment low in order to minimize the downside risk of a project.

Question

Quizplus · Accepted Answer

The real options logic process of evaluating ideas separates winning ideas from losing ones in a way that keeps investments low. Using real options logic to advance the development process is a key way that firms reduce uncertainty and minimize innovation-related failures.

Corporate Ventures That Use Real Options Logic in Decision Making