Which of the Following Statements Is TRUE with Regard to the R&D

question 78

Multiple Choice

Which of the following statements is TRUE with regard to the R&D activities of a firm?

• A) As a strategic asset, R&D activities are of moderate importance to the firm.
• B) R&D activities are usually concentrated at home.
• C) R&D activities have a low likelihood of being internalized.
• D) R&D activities have a high likelihood of being outsourced.

---

Definitions:

Net Inflow

The measurement of the total amount of money being transferred into a particular entity, sector, or system, minus the amount leaving it.

Net Outflow

The total amount of money leaving a country or economy as a result of outflows exceeding inflows, often related to international trade, investments, and financial transactions.

Gross Domestic Product (GDP)

Sum of all goods and services produced within a country’s boundaries during a specific time period, such as a year.

Exports and Imports

The act of selling goods and services to another country (exports) and buying goods and services from another country (imports).