Question 11

5pts

Using present value analysis does not work under conditions of uncertainty.

Group of answer choices

True

False

Flag question: Question 12

Question 12

5pts

Strategic choices are often made over time, in a staged manner.

Group of answer choices

True

False

Question 17

5pts

The greater the uncertainty the uncertainty about future ________, the greater is the value of a real option.

Group of answer choices

interest rates

cash flows

profitability

economic cycles

Flag question: Question 18

Question 18

5pts

Seymour Semiconductors is a major global player in the semiconductor and microchip industry. In the space that they compete in, there is tremendous technological uncertainty as disruptive innovations seemingly come out of nowhere to upend well-entrenched incumbents. These disruptions are often fast and are increasingly by companies that do not compete head-to-head with Seymour Semiconductors. In addition, market tastes for the end products that feature Seymour Semiconductors' components also change rapidly. The company was hurt financially when the market shifted away from personal computers (that accounted for a significant portion of Seymour Semiconductors' revenues), first to tablets, and then to other mobile devices. The company's new CEO, Lisa Monroe, has decided that the company's basic approach to strategy should change. Toward this, she has mandated that, at any point in time, Seymour Semiconductors should be able to choose from several different strategic options instead of a fixed and planned course of action that the company has pursued since it beginning. One of her mandates called for the company's future manufacturing plants to be built with the ability to add capacity at low cost. In addition, she wants to lay off 1,000 of the company's employees and hire contract and temporary workers in their stead. Finally, Monroe wants the company to use the real options approach to manage the combination of technological and market uncertainties.

Lisa Monroe's decision that called for Seymour Semiconductors to be able to choose from several strategic options instead of a fixed and planned course of action is called ________.

Group of answer choices

intended strategy

strategic flexibility

deliberate strategy

strategic intent

Flag question: Question 19

Question 19

5pts

Under conditions of uncertainty, cash flow projections are ________.

Group of answer choices

simply unreliable

fairly certain

risk free

quite risky