The Corporate Decision on Type and Level of R&D Activity

question 138

Multiple Choice

The corporate decision on type and level of R&D activity is difficult because

• A) the interest-rate cost of funds is difficult to estimate.
• B) much of corporate R&D is based on the pursuit of science, not on the profit motive.
• C) expected returns lie in the future and are highly uncertain.
• D) total returns and marginal returns greatly diverge.

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Definitions:

Sudoriferous Glands

Glands located in the dermis layer of the skin, responsible for producing and secreting sweat.

Perspiration

The process of sweating, where the body releases fluid through the sweat glands as a means of cooling down.

Sebum

An oily secretion from the sebaceous glands that helps to keep the skin and hair moisturized.

Varicella

A highly contagious viral infection also known as chickenpox, characterized by a blister-like rash, itching, tiredness, and fever.