When a Firm Develops a Knowledge Asset,such as a Process,pays

question 87

Multiple Choice

When a firm develops a knowledge asset,such as a process,pays for it and reuses it over and over at a very low cost,this adds ________ for the firm.

• A) tacit knowledge
• B) little value
• C) a competitive advantage
• D) a recoverable loss

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Definitions:

Consideration

In contract law, it refers to something of value exchanged between parties as the basis for a contract.

Bargained-for Exchange

Bargained-for exchange is a legal concept where parties agree to provide something of value to each other, forming the basis of a contract.

Illusory Promise

A statement that appears to be a binding commitment but allows for so much discretion that it does not legally bind the party making it.

Promisor

The party in a contract who makes a promise to perform or provide a benefit to the promisee.