What Are Bootstrap Options for Product Development

question 8

Multiple Choice

What are bootstrap options for product development?

• A)Preparing licences,royalties or advances from customers and applying the funding methods of research grants and university-based research incubators
• B)Special deals on access to product hardware and customer-funded research and development
• C)Turning a consultant project into a commercial product
• D)All of these choices

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Definitions:

Activity Method

A depreciation technique that allocates the cost of an asset over its useful life based on its level of activity, such as units produced or hours used.

Sum-Of-The-Years'-Digits Method

A depreciation technique that accelerates the expense recognition, basing the calculation on a fraction of the sum of the years’ digits of the asset’s life.

Inventory System

A method used by organizations to maintain and manage the goods or materials that they stock, either for sale or for production purposes.

Depreciation Expense

A non-cash charge that reduces the value of an asset over time due to use, wear and tear, or obsolescence.