1. Real options analysis is most appropriate when _____________.
a. the total investment required is small, but the environment is uncertain
b. the investment required can be justified by Discounted Cash Flow (DCF) techniques
c. a small investment up front can be followed by a series of subsequent investments
d. there is no prospect of obtaining additional knowledge before making subsequent investments
2. Which of the following is an advantage of a divisional type of organizational structure?
a. efficient use of managerial and technical talent
b. an enhanced ability to respond quickly to changes in the external environment
c. high degree of emphasis on long-term performance
d. uniformity in image and quality across divisions