The Corporate Decision on Type and Level of R&D Activity

question 138

Multiple Choice

The corporate decision on type and level of R&D activity is difficult because

• A) the interest-rate cost of funds is difficult to estimate.
• B) much of corporate R&D is based on the pursuit of science, not on the profit motive.
• C) expected returns lie in the future and are highly uncertain.
• D) total returns and marginal returns greatly diverge.

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Definitions:

Values

A broad tendency to prefer certain states of affairs over others.

States of Affairs

The current conditions or situations regarding a particular matter or context.

Collectivist Nations

Countries where societal cohesion and the interdependence of individuals are considered core values, emphasizing the needs and goals of the group over those of the individual.

Tight Cultures

Societies or organizations where strict norms and behaviors are expected to be adhered to by members.