CFA Practice Question

There are 151 practice questions for this study session.

CFA Practice Question

Friend-to-Friend, a company that sells cosmetics through a network of independent salespeople, is trying to decide whether to enter the vast Chinese market. The initial investment to build a manufacturing and sales organization would be large, but it may lead to the opportunity to sell a whole range of products through an established sales network. This is an example of
A. Growth options.
B. Flexibility options.
C. Fundamental options.
Explanation: The investment would thus create growth options that have value above and beyond the returns generated by the initial operations.

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