Scenario D

question 116

Multiple Choice

Scenario D. Power Man Nutrition develops performance based foods and beverages for athletic and active individuals. In a recent product development meeting, Bob suggested that Power Man acquire a newly developed, technology for infusing vitamin and mineral blends into food, created by PharmCo. Bob believes that Power Man should attain this technology because it would be easiest to acquire the technology straight from PharmCo. Gary, although supportive of this idea, feels that the method of infusing blends in the next generation of Power Man bar should be kept exclusive. Gary knows it may take longer to produce the technology and the power bar, but feels that the competitive advantage and exclusivity of the technology is worth the wait. Finally, Joy suggested that Power Man should work jointly with PharmCo to create a brand new technology and product. Joy liked Bob's idea of incorporating the latest technology however, Joy feels that Power Man does not possess sufficient financial resources to purchase the technology outright.
-Gary's idea that Power Man keep the ingredients exclusive suggests that he favors which method of acquiring technology?

• A)Internal development
• B)Licensing
• C)Contracted development
• D)Purchase
• E)A research partnership

Appreciate the relationship between psychological variables, such as the correlation between physical height and popularity.

Understand the risks and benefits of various research methods.

Identify the specializations within psychology and their focus areas.

Describe the empirical approach and its significance in scientific inquiry.

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Definitions:

Deferred Tax Asset

A deferred tax asset is an accounting term used to describe a situation where a business has paid more taxes or anticipates paying more taxes than it is currently liable for.

Income Tax Liability

The total amount of income tax that an individual or corporation owes to tax authorities.

Income Tax Expense

Income tax expense is the amount of expense that a business recognizes in a given accounting period for the taxes associated with its taxable income.

Journal Entry

A record of a financial transaction in the accounting books of a business or organization.