Managerial option
Managerial option (alternatively known as real option) is a financial option that give opportunities to managers to respond to changing market conditions.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Managerial option. An option that give opportunities to managers to respond to changing market conditions. Also called real options.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
