All of the Following Increase the Expected Rate of Return

question 109

Multiple Choice

All of the following increase the expected rate of return on R&D expenditures except

• A)patents.
• B)trademarks.
• C)imitation by others.
• D)trade secrets.

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Definitions:

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, aimed at protecting investors from fraud.

Solicitation of Proxies

The process by which shareholders are asked to delegate their voting power to representatives to vote on their behalf at shareholder meetings.

Section 12

A specific segment or part within a legal document or statute that addresses a particular point of law.