Juana, a Researcher in the Field of Physics, Has Created

question 57

Multiple Choice

Juana, a researcher in the field of physics, has created a new way of operating hydraulic equipment at a minimal operational cost. She wants to acquire a patent for her work. Choose the most appropriate reason that might make Juana think otherwise and not apply for a patent for her invention.

• A) The acquired patent will not grant her invention protection in foreign countries.
• B) With inventions related to physics, she cannot ask for government sanctions against patent infringers.
• C) Patent applications take a long time to be processed as they are the cheapest form of protecting intellectual property.
• D) She will need to disclose in full to the issuing authority the technical details of the invention.

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Definitions:

Total Risk

The sum of all risks affecting an investment, including both systematic (market) and unsystematic (individual) risks.

Systematic Risk

The danger associated with the overall market or a specific sector of the market that cannot be mitigated by spreading investments.

Capital Asset Pricing Model

A model used to determine the theoretical rate of return of an asset, considering the asset’s risk relative to that of the market.

Beta

A measure used in finance to describe the relationship of an investment's returns with those of the market; it indicates the investment's risk compared to the market.