Initech Incorporated,a Multinational Giant,runs a Number of Diversified Businesses

question 56

Multiple Choice

Initech Incorporated,a multinational giant,runs a number of diversified businesses.Which of the following can be considered as an intellectual property of the firm?

• A)income arising from renting land and buildings
• B)profits arising from the sale of agricultural crops
• C)interest earned by lending capital to other firms
• D)innovations and capabilities,and skills of the employees
• E)investments made in raw materials and machinery

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Definitions:

Appraisal Costs

Costs associated with the inspection and testing of materials and products to ensure quality standards are met.

Defects

Imperfections or faults in a product that cause it to be unsuitable for its intended use or significantly reduce its usability.

Throughput Accounting

An accounting method that focuses on the rate at which a company generates money through sales, rather than on traditional production costs.

Short-term Focus

Concentration on immediate goals or results, often at the expense of long-term objectives.