Initech Incorporated, a Multinational Giant, Runs a Number of Diversified

question 14

Multiple Choice

Initech Incorporated, a multinational giant, runs a number of diversified businesses. Which of the following can be considered as an intellectual property of the firm?

• A)Income arising from renting land and buildings
• B)Profits arising from the sale of agricultural crops
• C)Interest earned by lending capital to other firms
• D)Innovations and capabilities, and skills of the employees
• E)Investments made in raw materials and machinery

---

Definitions:

Incremental Cost Approach

An analysis technique that focuses on the additional costs and benefits associated with a particular decision or project.

Discount Rate

The interest rate used to discount future cash flows of a project or investment to their present value, reflecting the opportunity cost of capital.

Annual Net Cash Inflows

The total cash inflows minus the cash outflows for a business within a one-year period.

Useful Life

The estimated period over which an asset is expected to be usable by a business.