Which of the Following Is a Disadvantage of Purchasing Technology

question 23

Multiple Choice

Which of the following is a disadvantage of purchasing technology that already is available in products or processes?

• A) It is the most time-consuming way to acquire new technology.
• B) It is the least cost-effective way to acquire new technology.
• C) The purchase requires more staff than internal development.
• D) The coordination and monitoring costs will be high.
• E) The technology itself will not offer a competitive advantage.

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Definitions:

New Equity Issue

The process through which a company raises capital by selling shares of stock to the public or private investors for the first time.

Shares Undervalued

A situation where stock shares are being sold for less than their intrinsic value, often due to market inefficiencies.

Rights Offering

A process where existing shareholders are given the right to buy additional shares at a discount, typically to raise additional capital.

Value Of A Right

In the context of finance, it refers to the value of a right to purchase additional securities at a predetermined price before the public.