One of the Major Advantages of Being the First to Develop

question 146

Multiple Choice

One of the major advantages of being the first to develop a product is

• A)an increase in the average total cost of production.
• B)less need for legal protection for the product.
• C)the opportunity to be bought out for a profit.
• D)the ability to use the fast-second strategy.

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Definitions:

Preferred Dividends

Dividends that are paid to preferred shareholders at a fixed rate prior to any dividend payments to common shareholders.

Noncash Assets

Assets that cannot be easily converted into cash, such as property, plant, equipment, and intangible assets.

Net Income

Total revenue minus total expenses, indicating the profitability of a company over a specified period.

Net Loss

The situation where a company's expenses exceed its revenues during a specific period, leading to a negative profit.