Absorptive Capacity Refers to the Ability of an Enterprise to Identify

question 7

True/False

Absorptive capacity refers to the ability of an enterprise to identify, value, assimilate, and use new knowledge.

---

Definitions:

Present Value

The value today of a future sum of money or sequence of cash payments, calculated using a specific return rate.

Lease Payments

Payments made under a lease agreement by the lessee to the lessor for the use of an asset over the lease term.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, often used in evaluating investment opportunities.

Interest Rate

The ratio of interest charged on a loan to the borrower, usually represented as a yearly percentage of the remaining loan amount.