If the Firm Is Not Organized to Capture the Value

question 51

Multiple Choice

If the firm is not organized to capture the value from its resources it will not profit from the investment in the resources.In the 1980's Xerox's Palo Alto Research Center (PARC) developed many of the foundations for the ___________ industry.Yet these valuable and rare innovations were commercialized by other firms.

• A) Photo copying
• B) Transportation
• C) Desktop computing
• D) Music

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Definitions:

Exempt Assets

Properties or assets that are protected by law from being seized by creditors or in bankruptcy proceedings.

Nonexempt Assets

Assets that can be seized by creditors under bankruptcy proceedings, as opposed to those protected or exempt.

Involuntary Petition

A legal process initiated by creditors requesting the bankruptcy court to declare a debtor bankrupt, typically utilized when the debtor is not paying outstanding debts.

Chapter 7

A provision of the U.S. Bankruptcy Code that involves the liquidation of a debtor's non-exempt assets to pay off creditors.