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Why Would a Company Create a Knockoff of Another Product

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Why would a company create a knockoff of another product?


Definitions:

Operating Cash Flow

Operating Cash Flow is the cash generated from the normal operations of a business, reflecting its ability to generate sufficient positive cash flow to maintain and grow its operations.

Depreciation Expense

The allocated portion of the cost of a fixed asset, charged as an expense over its useful life.

Interest Expense

The expenses an entity faces for borrowing money.

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered and should not affect current and future business decisions.

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