Scenario 10-2

question 89

Multiple Choice

Scenario 10-2. Kimberly is the mother of three small children, ages four, three, and one. After hours of picking up small toys, she has come up with a wonderful idea. Her new machine would be somewhat like a vacuum cleaner in that it would pick up toys. However, it would have a very large opening so that all toys would fit, within reason. This new machine would then sort the toys according to size and weight into a compartment attached to the machine. Kimberly sees this as a way to reduce hours of time for mothers and day care centers
-In Scenario 10-2, in order to protect this new idea from her competition, Kimberly should apply for a ______.

• A) patent
• B) trademark
• C) brand name
• D) copyright

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Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of investments.

Future Cash Inflows

The projection of money expected to be received by a business or investment in the future.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Net Present Value

A calculation that compares the present value of a project’s cash inflows with the present value of its cash outflows, used in capital budgeting to assess profitability.