If You Wanted to Ensure That Your Business Maintains a Competitive

question 63

Multiple Choice

If you wanted to ensure that your business maintains a competitive edge, what should be one of your main concerns when purchasing technology?

• A) The new technology communicates with existing systems
• B) Standard operating procedures are supported so that innovative employees can focus on new markets
• C) The new technology is consistent with the technology owned by your customer base
• D) The new technology enables you to be innovative and move into new markets

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Definitions:

Appreciated Property

An asset that has increased in value over time from its original purchase price.

Nonliquidating Distribution

A nonliquidating distribution refers to distributions made by a corporation to its shareholders that are not in complete termination of the shareholder’s interest in the corporation.

Shareholders

Shareholders are individuals or entities that own one or more shares of stock in a corporation, making them partial owners of that corporation.

Corporation

A legal entity that is separate and distinct from its owners, providing limited liability and the ability to raise capital.