What are the four characteristics of knowledge that make it unlike other organizational assets?
What will be an ideal response?
• Extraordinary leverage and increasing returns. Knowledge is not subject to diminishing returns. When it is used, it is not decreased (or depleted); rather, it is increased (or improved). Its consumers can add to it, thus increasing its value.
• Fragmentation, leakage, and the need to refresh. As knowledge grows, it branches and fragments. Knowledge is dynamic; it is information in action. Thus, an organization must continually refresh its knowledge base to maintain it as a source of competitive advantage.
• Uncertain value. It is difficult to estimate the impact of an investment in knowledge. There are too many intangible aspects that cannot be easily quantified.
• Value of sharing. It is difficult to estimate the value of sharing one's knowledge or even who will benefit most from it.
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Indicate whether the statement is true or false
Under the allowance method, estimated uncollectible receivables are credited to
a. A contra asset account b. Cash (net) realizable value. c. Debt realizable value d. Allowance for doubtful accounts.
A firm has an issue of preferred stock outstanding that has a par value of $100 and a 4% dividend. If the current market price of the preferred stock is $50, the yield on the preferred stock is ________
A) 4.00% B) 6.00% C) 8.00% D) 12.00%
The two methods for the translation of foreign subsidiary financial statements are the current rate and temporal methods
Briefly, describe how each of these methods translates the foreign subsidiary financial statements into the parent company's consolidated statements. Identify when each technique should be used and the major advantage(s) of each. What will be an ideal response?