What conclusions do you draw about (a) yourself as a consumer, and (b) the performance of each
Question:
What conclusions do you draw about
(a) yourself as a consumer, and
(b) the performance of each of the businesses in Exercise 1? Assess whether any of these businesses managed to develop a sustainable competitive advantage through the way it won your loyalty.
Data From Exercise 1
Transcribed Image Text:
E12-1 (Classification Issues-Intangibles) Presented below is a list of items that could be included in the intangible assets section of the statement of financial position. 1. Investment in a subsidiary company. 2. Timberland. 3. Cost of engineering activity required to advance the design of a product to the manufacturing stage. 4. Lease prepayment (6 months' rent paid in advance). 5. Cost of equipment obtained. 6. Cost of searching for applications of new research findings. 7. Costs incurred in the formation of a corporation. 8. Operating losses incurred in the start-up of a business. 9. Training costs incurred in start-up of new operation. 10. Purchase cost of a franchise. 11. Goodwill generated internally. 12. Cost of testing in search for product alternatives. 13. Goodwill acquired in the purchase of a business. 14. Cost of developing a patent (before achieving economic viability). 15. Cost of purchasing a patent from an inventor. 16. Legal costs incurred in securing a patent. 17. Unrecovered costs of a successful legal suit to protect the patent. 18. Cost of conceptual formulation of possible product alternatives. 19. Cost of purchasing a copyright. 20. Development costs incurred after achieving economic viability.
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ANSWER Investment in a subsidiary company This indicates a strategic move to expand operations and diversify revenue streams It may contribute to a sustainable competitive advantage if the subsidiary ...View the full answer
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Related Book For
Essentials Of Services Marketing
ISBN: 9781292089959
3rd Edition
Authors: Jochen Wirtz, Christopher Lovelock, Patricia Chew
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