If a Firm Has the Option of Investing in R&D,the

question 18

Multiple Choice

If a firm has the option of investing in R&D,the cost of commercializing a new technology that is developed can be considered the:

• A) exercise price.
• B) price of a call option.
• C) benefit of exercising the option.
• D) the value of the option.

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Definitions:

External Regulations

Rules, laws, or standards set by external bodies, such as government agencies, that organizations must comply with.

Law Compliance

The act of adhering to local, national, or international laws and regulations relevant to one's actions or business operations.

Economic Responsibility

The obligation of an organization to contribute to economic development while improving the quality of life of its workforce and the community.

Goods And Services

The tangible products (goods) and intangible items (services) that satisfy human wants or needs and are offered in the market.