Why do most companies examine expansion proposals one at a time rather than comparing various expansion proposals? Do you think this is effective? Why or why not?

What will be an ideal response?

Three major factors restricting companies from comparing investment opportunities are cost, time, and the interrelation of operations. Clearly, some companies cannot afford to conduct many investigations simultaneously. If they are conducted simultaneously, they are apt to be in various stages of completion at a given time. Further, in many cases they need to respond quickly to an opportunity they had not anticipated, such as an unsolicited proposal or limited offer from a government.