Studies of Returns from Information Technology Investments Show That There

question 136

Essay

Studies of returns from information technology investments show that there is considerable variation in the returns firms receive.How does the concept of concept of complementary assets explain this variation in returns to the firm?

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Definitions:

UCC

Stands for the Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across the country.

Finance Lease

A lease agreement where the lessee assumes both the risks and rewards of ownership of the asset, but legal title may not be transferred.

Acquires Title

The act of obtaining legal ownership of a property or asset.

Lessor

The party that rents or leases property to another party, known as the lessee.