Which of the following is NOT true of irreversible investments?
A) When investors wait to see what happens,that means resources are sitting idle rather than being productive.
B) Uncertainty usually slows investment and keeps resources in less productive uses.
C) Once an investment opportunity is identified,the execution should follow immediately.
D) If new information casts suspicion on a potential investment,the truth is typically sought out before proceeding.

Question

Quizplus · Accepted Answer

Irreversible investments are characterized by the fact that once made, they cannot be easily undone or sold without a significant loss. This means that investors are more cautious and will often wait for more information before committing, rather than rushing into execution immediately after identifying an opportunity. Choices A, B, and D reflect this cautious approach, whereas C incorrectly suggests immediate action is typical for irreversible investments.

Which of the Following Is NOT True of Irreversible Investments