Not-Invented-Here Syndrome Occurs When

question 17

Multiple Choice

Not-invented-here syndrome occurs when:

• A) a division of a firm is reluctant to adopt other divisions' innovations.
• B) a firm tends to always adopt innovations developed by competitors.
• C) an innovation is openly accepted without testing its suitability.
• D) developers of a failed innovation refuse to take responsibility for its failure.

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Definitions:

Financing Activities

Transactions and events where cash is raised for the business through borrowing or issuing equity, reflected in the cash flow statement.

Cash Flows

The movement of money into and out of a business, indicating the company's ability to generate cash from operations, investments, and financing activities.

Operating Activities

Day-to-day actions that a company takes in conducting its business, such as selling products, managing costs, and paying wages.

Net Income

The total profit or loss of a company after all revenues and expenses have been accounted for, also known as net earnings.