Zoe Invents "All for One," New Business Inventory Control Software,and

question 25

Multiple Choice

Zoe invents "All for One," new business inventory control software,and applies for a patent.If Zoe is granted a patent,it will protect her product

• A)for ten years.
• B)for twenty years.
• C)for the life of the inventor plus seventy years.
• D)forever.

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Definitions:

Debt

An amount of money borrowed by one party from another, under the condition of repayment with interest.

Interest Tax Benefit

The financial advantage gained through deducting interest payments on debt from taxable income.

MM Model

Modigliani-Miller Model; a theory on capital structure that suggests the market value of a firm is determined by its earning power and the risk of its underlying assets.

Tax-Deductibility

Pertains to expenses that can be subtracted from gross income to reduce the total taxable income, thereby lowering the amount of tax owed.