Which type of real option allows the output and/or inputs in the production process to be altered, depending on how market conditions change during a project's life? a. Flexibility option b. Timing option c. Abandonment option

Question

Laura Kelly

Business

2 August, 14:39

Which type of real option allows the output and/or inputs in the production process to be altered, depending on how market conditions change during a project's life? a. Flexibility option b. Timing option c. Abandonment option

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Answers (2)

Know the Answer?

Raul Carter · Answer 1

B

Explanation:

Timing option makes it possible to alter inputs or outputs in production process.

Moises Berger · Answer 2

correction option is A i. e. Flexibility option

Explanation:

correction option is A i. e. Flexibility option

flexibility option make easier for corporation unit to decide on production or raw material on the basis of market condition.

Abandonment option - As the name indicate this option initiate when corporation suffered huge lost or when there is a conditioned of minimum cash flow due to any reason.