Streamtech, a Manufacturer of Automobiles, Recently Received a Patent for an Unmanned

question 94

Multiple Choice

Streamtech, a manufacturer of automobiles, recently received a patent for an unmanned search boat. By doing this, Streamtech has ________.

• A)created an entry barrier
• B)introduced product differentiation
• C)locked in its suppliers
• D)reduced the cost of operations

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Definitions:

Accumulated Depreciation

The total amount of an asset's cost that has been expensed over time due to wear and tear, obsolescence, or age.

Residual Value

The projected sum an asset will fetch at the time of sale, once it has surpassed its lifespan.

Straight-Line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Depreciation Expense

An accounting method to allocate the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.