A Technology Company Wants to Move into the Field of Wireless

question 32

Multiple Choice

A technology company wants to move into the field of wireless communications. Unfortunately, few of its employees know enough about the basic technology to acquire emerging knowledge about that field or to launch a separate business unit to enter that market. With respect to learning about wireless technology knowledge, this organization has:

• A)too much of an open system.
• B)low organizational memory.
• C)high human capital but low relationship capital.
• D)low human capital.
• E)too much structural capital.

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Definitions:

Revenue Recognition

The accounting principle governing when revenue is considered earned and can be recorded in the financial statements.

Risk Of Ownership

The potential for loss resulting from owning an asset, including factors such as depreciation, obsolescence, and market volatility.

Service Revenue

Income earned from providing services rather than selling physical products.

Future Economic Benefits

Refers to potential benefits to be received by an entity from its assets, contributing to its revenue.