Which of the Following Is an Important Benefit of Demonstrating

question 20

Multiple Choice

Which of the following is an important benefit of demonstrating proof of concept (POC) with a prototype?

• A) Requisite technologies to create the final product can be developed early when technology resources are not in demand.
• B) Changes in the prototype can be made early in the process when changes are less costly.
• C) The prototype is an asset that can be used as collateral when securing financing for a loan.
• D) It will indicate how much room there is for error between the cost to produce a product or deliver a service and the selling price.
• E) Creating a prototype establishes an implicit patent on your product.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not directly related to the company's day-to-day operations.

Cash Flow

Cash flow is the net amount of cash and cash-equivalents moving into and out of a business, indicating its liquidity, financial health, and ability to fund operations.

Land

An asset category in accounting representing real estate or property owned by a business, excluding buildings or structures on the property.

Investing Activities

Financial transactions related to the purchase or sale of long-term assets and investments, as reported in a company's cash flow statement.