Ethel Has Developed and Patented a New Process for Recycling

question 37

Multiple Choice

Ethel has developed and patented a new process for recycling plastic. A number of companies have expressed an interest in buying her company in order to gain access to the technology. If she sells her company, the buyer will employed the method of:

• A) acquisition of a technology owner.
• B) research partnerships and joint ventures.
• C) technology trading.
• D) contracted development.
• E) internal development.

---

Definitions:

Cost-Of-Living Adjustment

An increase in income or benefits to compensate for a rise in the prices of goods and services, maintaining the purchasing power.

Employment Contract

A formal agreement between an employer and an employee outlining the terms of employment, including responsibilities, compensation, and duration.

Loanable Funds

The money available in the financial system for lending to individuals, businesses, and the government.

Equilibrium Interest Rate

The interest rate at which the demand for funds equals the supply of funds in the market, bringing the financial market into balance.