A firm that invests heavily in derivative projects:
A) will have greater long-term strategic momentum.
B) will be on the leading edge of technology.
C) will have good returns on its R&D investment in the short run.
D) will be able to compete easily when the market shifts to a newer technology.

Question

Quizplus · Accepted Answer

Investing heavily in derivative projects may result in short-term returns on R&D investment, as these projects can be high risk and high reward. However, it does not necessarily guarantee long-term strategic momentum, being on the leading edge of technology, or easy competition when the market shifts to newer technology.

A Firm That Invests Heavily in Derivative Projects