A Disadvantage of Purchasing Technology That Already Is Available in Products

question 69

Multiple Choice

A disadvantage of purchasing technology that already is available in products or processes is that

• A) it is the most time-consuming way to acquire new technology.
• B) it is the least cost-effective way to acquire new technology.
• C) the purchase requires more staff than internal development.
• D) the coordination and monitoring costs will be high.
• E) the technology itself will not offer a competitive advantage.

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Definitions:

Effective Usury Laws

Laws designed to set maximum interest rates that can be charged on loans, to prevent lenders from charging excessively high rates.

Money Markets

Financial markets for short-term borrowing and lending, dealing in securities such as Treasury bills and commercial paper.

Investment-Demand

Investment-Demand entails the desire for assets or goods that will provide returns over time, heavily influenced by interest rates, future profit expectations, and economic conditions.

Interest Rate

The part of the loan amount that is levied as interest by the lender on the borrower, often presented as an annual percentage rate of the loan's total value.