Compute the Amount of the Patent Reported in the Consolidated

question 1

Multiple Choice

Compute the amount of the patent reported in the consolidated balance sheet at December 31, 2018.

• A) $28,200.
• B) $25,700.
• C) $35,000.
• D) $27,200.
• E) $26,000.

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Definitions:

Diversification

A strategy for managing risk that diversifies by incorporating a broad range of investments in a single portfolio.

Market Development

A growth strategy where a company seeks to increase sales by promoting existing products in new markets or new segments of current markets.

Product Development

The process of bringing a new product or service to the market, from initial concept through design, prototype, testing, and finally, launch.

Market Penetration

A strategy aiming to increase market share within an existing market segment by using methods such as pricing adjustments, increased promotion, and product improvements.