Two major goals of business are to achieve profitability and to achieve liquidity
Indicate whether the statement is true or false
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Which of the following statements is CORRECT?
A. If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its customers. Thus, cannibalization is dealt with by society through the antitrust laws. B. If cannibalization exists, then the cash flows associated with the project must be increased to offset these effects. Otherwise, the calculated NPV will be biased downward. C. If cannibalization is determined to exist, then this means that the calculated NPV if cannibalization is considered will be higher than the NPV if this effect is not recognized. D. Cannibalization, as described in the text, is a type of externality that is not against the law, and any harm it causes is done to the firm itself. E. If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its competitors. Thus, cannibalization is dealt with by society through the antitrust laws.
By the early 2000s, Sony's vaunted innovation and marketing machine was faltering due to the anticipated rapid consumer acceptance of flat-panel wide-screen TV sets
Indicate whether the statement is true or false
Which of the following expenditures cannot be included in R&D costs?
A) indirect costs B) intangibles purchased from others C) personnel costs D) contract services performed for others
Communications through bystanders may occur
A. as an effort to build alliances and support for one's own position. B. as a result of the natural tendency for conflict to proliferate and envelop innocent bystanders. C. as an explicit and conscious tactic to exert influence on the other party. D. All of these choices are correct.