Which two of the following best describe the real options approach?
A) Managers are obliged to take certain actions in the future.
B) Managers are given the possibility to take an action in the future.
C) Managers are not obliged to take particular actions in the future.
D) Managers must refer potential changes to the original managers who made the decisions.

Question

Quizplus · Accepted Answer

The real options approach gives managers the flexibility or option to take certain actions in the future, but they are not obliged to do so. This approach allows for a more dynamic decision-making process, where managers can react to changing market conditions and uncertainties. Therefore, options B and C best describe the real options approach. Options A and D are incorrect as they imply a lack of flexibility and control over the decision-making process.

Which Two of the Following Best Describe the Real Options