Identify the external product development strategies; describe each in a sentence or two
What will be an ideal response?
The external product development strategies include alliances, joint ventures, and purchase of technology or expertise by acquiring the developer. Alliances are cooperative agreements that allow firms to remain independent, but use complementing strengths to pursue strategies consistent with their individual missions. Joint ventures are combined ownership to pursue new products or markets. Purchasing technology or expertise is usually accomplished by acquiring entrepreneurial firms that have already developed the technology that fits the mission. The issue then becomes fitting the purchased organization, its technology, and its product line into the buying firm, rather than a product development issue.
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Auditors of a public company may face unlimited liability to investors who may be a worldwide class of potential plaintiffs. What do the courts do to limit such responsibility in negligence?
A) They limit damages to the cost of the audit fees. B) They make auditors liable only for gross negligence C) They limit the scope of duty. D) They make it very difficult to prove causation. E) None of the above
Martha started a flower shop as a sole proprietor. After one year, she was forced to close the
shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true? A) Martha's business creditors can collect only the $50,000 now, but if Martha ever goes into business again, they can get the assets of the new business. B) Martha's business creditors can collect only the $50,000 of business assets. C) Once Martha terminates the sole proprietorship, the business creditors cannot get even the $50,000. D) Martha is personally liable for the additional $75,000.