Asked by Kendall Messerole on Jul 21, 2024

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Other things equal,trademarks and brand names:

A) increase the interest-rate cost of funds used to finance R&D expenditures.
B) decrease the interest-rate cost of funds used to finance R&D expenditures.
C) decrease the expected rate of return on R&D expenditures.
D) increase the expected rate of return on R&D expenditures.

Trademarks

Legal symbols or words registered to represent a company or product, offering legal protection against unauthorized use.

Interest-rate Cost

The expense incurred by borrowing funds, typically expressed as a percentage of the total amount borrowed.

Expected Rate

The anticipated return on an investment or the average rate at which an event is predicted to occur over a specific period.

  • Appreciate the role of legal entities like patents, trademarks, and copyrights in driving innovation and protecting intellectual ownership.
  • Examine the relationship between market structures and business abilities and incentives to support Research and Development investments.
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DS
Divya ShankerJul 24, 2024
Final Answer :
D
Explanation :
Trademarks and brand names can increase the expected rate of return on R&D expenditures by establishing a strong brand identity and increasing customer loyalty and recognition. This can lead to increased sales and market share, which in turn can generate higher profits and returns on the R&D investment.