Which of the Following Is Not Considered Research and Development

question 43

Multiple Choice

Which of the following is not considered research and development costs?

• A) Planned search or critical investigation aimed at discovery of new knowledge.
• B) Translation of research findings or other knowledge into a plan or design for a new product or process.
• C) Translation of research findings or other knowledge into a significant improvement of an existing product.
• D) Cost of marketing research to promote a new product.

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Definitions:

Friendly Suitor

A company that makes an acquisition offer that the management of the target company approves of.

Hostile Bidder

An entity or individual that makes an offer to buy a company despite resistance or disapproval from the target company's board of directors.

Management Buyout

The acquisition of a company's controlling share by its management team, often with the assistance of external financiers.

Going-Private Transaction

A process in which a publicly traded company is transformed into a privately held entity by buying out the public shareholders.