The following are examples of expansion options:
I. A mining company may acquire rights to an ore body that is not worth developing today but could be profitable if product prices increase
II. A film producing company acquiring the rights to a novel to produce a film based on the novel in the future
III. A real estate developer may acquire a parcel of land that could be turned into a shopping mall
IV. A pharmaceutical company may acquire a patent to market a new drug
A) I only
B) I and II only
C) I, II, and III only
D) I, II, III, and IV

Question

Quizplus · Accepted Answer

All of the examples are expansion options because they involve acquiring assets that could be profitable in the future.

The Following Are Examples of Expansion Options