Irreversibility
What an option makes impossible to undo, and for how long. It is compared between options in the same way as cost, and should often decide in its place.
What it changes for the executive
A building commits for twenty years, a machine for seven, a partnership for the term of the contract, a hire for three months' notice. Two options at the same cost can have unrelated irreversibilities. A cheaper but irreversible option can be riskier than a more expensive one you can exit; it is the most frequent comparison error in investment decisions.
Example
Leasing premises costs more per month than buying; but buying ties up for twenty years a company whose first client may leave at the end of its contract. Cost favours buying, irreversibility favours leasing.
A term that is missing?
Describe the situation in a few lines; the reply is personal.