Asked by Kaylee Greydanus on Jul 13, 2024
Verified
Provide a definition for the term managerial options or real options.
Managerial Options
Financial incentives given to managers and executives, often in the form of stock options, to align their interests with those of the shareholders by motivating them to enhance the company's value.
Real Options
The flexibility to make strategic business decisions, such as deferring, abandoning, expanding, or contracting a project based on new information or market changes.
- Define and differentiate between managerial options and strategic options.
Verified Answer
DE
David EdwardsJul 17, 2024
Final Answer :
Opportunities that managers can exploit if certain things happen in the future.
Learning Objectives
- Define and differentiate between managerial options and strategic options.