Microsoft Certified: Azure Fundamentals (AZ-900) Practice Exam

If your company is experimenting with a new solution that has a high risk of failure, what is the preferred financial approach?

1. CapEx

2. OpEx

3. Both

4. None

The correct answer is: OpEx

In a scenario where a company is experimenting with a new solution that carries a high risk of failure, the preferred financial approach is to leverage operational expenditures (OpEx). OpEx allows companies to incur costs on a pay-as-you-go basis, which is particularly beneficial when dealing with uncertain outcomes. This model helps to minimize financial exposure since investments can be scaled up or down based on project performance. If the experiment fails, the company only incurs costs for the resources used during the trial period, rather than making large upfront investments that are characteristic of capital expenditures (CapEx). By opting for OpEx, the company can maintain greater flexibility and agility, responding quickly to the results of their experimentation without being burdened by significant long-term financial commitments. This approach is especially advantageous in innovative environments where quick adaptation and learning are vital. Overall, choosing OpEx for high-risk initiatives aligns well with the strategic need to manage uncertainty and limit potential losses, making it the preferred financial approach in this context.