Question

__________ theory suggests that under conditions of high uncertainty, firms may be unwilling to commit to a particular course of action by engaging in an exchange with a firm and will choose, instead, the strategic flexibility associated with alliances.

A. CapabilitiesB. Real optionsC. Transaction cost economicsD. Resource based

Answer 1

B

Step-by-step explanation:

The real options theory was established to give insight into making choices and decisions that have to do with investments when it is looking unlikely to predict its outcome. In relation to business, a 'real option' is a choice that a company has when dealing with an investment opportunity. The word 'real' describes physical items with clear purchase values and not a monetary contract between parties.