Question

One way for a biotechnology, software, or other high-technology company to increase cash from operations would be to reduce spending on research. Explain why reducing spending on research (which is expensed when incurred according to IFRS) would increase cash from operations. Explain why reducing spending on research is potentially a serious problem for these types of companies. Respond by discussing the business implications of reducing spending on research.



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  • CreatedFebruary 26, 2015
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