Which of the Following Is a Disadvantage of Acquiring a New

question 22

Multiple Choice

Which of the following is a disadvantage of acquiring a new technology by purchasing the company that owns the technology?

• A) Developing technology becomes time consuming.
• B) The process requires more staff than internal development.
• C) It makes the purchasing firm highly dependent on its internal development capabilities.
• D) The purchasing company will not own or control the unique technology.
• E) Acquiring the company can be expensive.

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Definitions:

Regressive Tax

A tax system where the tax rate decreases as the amount subject to taxation increases, placing a heavier burden on lower-income earners.

Market Activity

The collective buying and selling of goods and services, including financial transactions, in an economy.

Government Activity

Actions taken by a government to influence its country's economy, including policies and programs.

Voluntary Exchange

An economic transaction where both parties agree to trade goods or services by mutual consent without coercion.