If a Firm Possesses Proprietary Product Technology, the Best Option

question 27

Multiple Choice

If a firm possesses proprietary product technology, the best option for that firm would be to

• A) manufacture the product in-house so that it does not lose its competitive advantage.
• B) outsource the production activities to independent suppliers in order to realize economies of scale.
• C) merge with competitors to reduce investments on technology.
• D) share the technology to make the industry more competitive.
• E) transfer the technology to less developed countries.

---

Definitions:

Collision Insurance

A type of automobile insurance that protects the insured against any loss arising from damage to the insured’s automobile caused by accidental collision with another object or with any part of the roadbed.

Annuity

A guaranteed retirement income.

Property Insurance

Insurance coverage that provides protection against most risks to property, such as fire, theft, and some weather damage.

Valuable Artwork

Works of art that possess significant monetary, cultural, or historical value.