"Bart, I'm in Favor of Developing Technology Internally If There

question 94

Multiple Choice

"Bart, I'm in favor of developing technology internally if there is business value to keeping it proprietary," said Jerry Sterling, CFO of British Styles, to his product development manager. "However, in this case, I don't see the value. After all, developing the technology internally will probably ________," Jerry concluded.

• A)make us dependent on other firms
• B)not provide a competitive advantage
• C)not allow its use to be exclusive to the firm
• D)result in high coordination costs
• E)require additional staff and funding for long periods

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Definitions:

Service Contract

An agreement between a customer and a service provider detailing the terms of service delivery, including scope, quality, and responsibilities.

Adjusting Journal Entry

A financial transaction recorded at the closure of an accounting cycle to properly assign earnings and expenses to the corresponding period.

Performed

Carried out or executed a task or function.

Prepaid

Refers to expenses that have been paid in advance of their due date and are recorded as assets until they are actually incurred.