If a Firm Possesses Proprietary Product Technology, the Best Option

question 27

Multiple Choice

If a firm possesses proprietary product technology, the best option for that firm would be to

• A) manufacture the product in-house so that it does not lose its competitive advantage.
• B) outsource the production activities to independent suppliers in order to realize economies of scale.
• C) merge with competitors to reduce investments on technology.
• D) share the technology to make the industry more competitive.
• E) transfer the technology to less developed countries.

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Definitions:

Business Activities

Various actions undertaken by a company in the pursuit of its commercial objectives, including operating, investing, and financing activities.

Operating Cycle

The process by which a company spends cash, generates revenues, and receives cash from customers.

Stockholders' Equity

The stake in a corporation's assets left over after all debts are cleared, signifying an ownership interest.

Liabilities

Financial obligations or debts that a company owes to others.