The Patent System Is Intended To

question 89

Multiple Choice

The patent system is intended to:

• A) prevent natural monopolies from unfairly exploiting their cost advantages.
• B) reward innovators by granting them temporary monopolies.
• C) spread information among firms as quickly and economically as possible.
• D) give small businesses a competitive edge over larger businesses.

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Definitions:

Carrying Value

The book value of an asset on a company’s balance sheet, calculated as the original cost minus accumulated depreciation or amortization.

Equity Method

An accounting method used to assess the investments in associate companies where the investor has significant influence but does not control the company outright.

Consolidation Process

The method of combining the financial statements of a parent company with those of its subsidiaries to present as one entity.

Net Income

Net income is the total amount of profit a company makes after all expenses, taxes, and costs have been subtracted from its total revenue.