Which Would Be an Example of Innovation Within an Existing

question 302

Multiple Choice

Which would be an example of innovation within an existing business firm?

• A)the development of Post-it note pads by the 3M Corporation
• B)the granting of a patent to a university researcher
• C)the formation of the start-up firm Amgen
• D)the merger of AOL and Time-Warner

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Definitions:

Uncollectible Accounts Expense

An expense account that represents money owed to a company that is not expected to be collected due to customer defaults.

Direct Write-off Method

An accounting method where bad debts or uncollectible accounts receivable are directly written off against income at the time they are deemed uncollectible.

Bad Debt Expense

The cost associated with accounts receivable that a company is unable to collect, considered as an expense on the income statement.

Accounts Receivable Turnover Ratio

A financial metric that measures how efficiently a company collects revenue from its credit sales, calculated by dividing net credit sales by average accounts receivable.