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:

Net Operating Profit After Taxes (NOPAT)

NOPAT is a measure of a company's operating efficiency, indicating the profit generated from operations after taxes but before financing costs and non-operating gains and losses.

Shareholders' Equity

The owners' equity in a corporation, calculated as the company's total assets minus its total liabilities.

Corporate Tax Liability

The total amount of taxes owed by a corporation based on its taxable income.

Projected Taxable Income

An estimate of an entity's income for a fiscal period that is subject to income tax.