Question : Case Study: LMN Ventures - Financing Innovation and Research
LMN Ventures is a research-driven technology company aiming to innovate and develop cutting-edge products. The company is exploring various sources of business finance to support its research and development endeavors.
Questions : Business Finance and Research
In the context of business finance, what role does research and development (R&D) play?
Option 1: Minimizing operational costs
Option 2: Maximizing short-term profits
Option 3: Exploring new business areas
Option 4: Innovating and developing new products
Correct Answer: Innovating and developing new products
Solution : The correct answer is (d) Innovating and developing new products
In the context of business finance, research and development (R&D) plays a crucial role in innovating and developing new products or improving existing ones. R&D involves activities aimed at discovering new knowledge, technologies, and methods, which are then utilized to create new products, services, or processes.
Innovating and developing new product is the primary role of R&D in the context of business finance. R&D activities are aimed at innovation, improving existing products, or creating new ones to gain a competitive edge and meet market demands.
