A Patent on a New Product Benefits the Firm Securing

question 46

Multiple Choice

A patent on a new product benefits the firm securing it by

• A)limiting the direct imitation of the product by rivals for many years.
• B)enabling the firm to retain "trade secrets" about the product.
• C)reducing the firm's legal expenses.
• D)increasing the speed of diffusion of the new product.

---

Definitions:

Personal Control

The extent to which individuals feel they can control their environment and outcomes, affecting their motivation and behavioral engagements.

Zero Growth Model

A valuation method assuming a company will not grow and will continue to pay a constant dividend indefinitely.

Stock Valuation

The process of determining the intrinsic value of a stock based on future earnings, dividend payouts, and other factors to decide whether a stock is overvalued, undervalued, or fairly priced.

Supernormal Growth Stock

Stocks of companies expected to experience higher than average growth rates in earnings or revenues in the future.