"Ben, I'm in Favor of Developing Technology Internally If There

question 11

Multiple Choice

"Ben, I'm in favor of developing technology internally if there is business value to keeping it proprietary," said Julius Stiles, CFO of Beatty Goods, to his product development manager. "However, in this case, I don't see the value. After all, developing the technology internally will probably ________," Julius concluded.

• A) make us dependent on other firms
• B) not provide a competitive advantage
• C) not allow its use to be exclusive to the firm
• D) result in high coordination costs
• E) require additional staff and funding for long periods

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Definitions:

Investing Activities

Transactions and events that involve the purchase or sale of long-term assets and other investments not included in cash equivalents.

Operating Activities

Business actions that are directly related to the production and delivery of goods and services, which are fundamental to the company’s operations.

Cash Flow Per Share

A measure indicating the amount of cash flow generated by a company on a per-share basis, useful for assessing financial performance and liquidity.

GAAP

A set of widely adhered-to accounting norms and guidelines for financial statements.