Managers Perceive Internal Product Development as a High-Risk Activity and Tend

question 75

Multiple Choice

Managers perceive internal product development as a high-risk activity and tend to choose acquisitions because approximately _______ percent of innovations are imitated within four years after patents are obtained.

• A) five
• B) ten
• C) sixty
• D) twenty

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Definitions:

Managerial Efficiency

A measure of the effectiveness with which managers utilize resources at their disposal to achieve organizational goals.

Purchase Method

An accounting technique used in mergers and acquisitions where the buyer records the assets and liabilities of the acquired company at fair market value.

Book Value

The net value of a company's assets found on its balance sheet, and calculated as total assets minus intangible assets (patents, goodwill) and liabilities.

Market Value

The current price at which an asset or service can be bought or sold in the market.