The purpose of patents is to Encourage innovation by helping firms recoup the costs of research and development.
<h3>What do patents do?</h3>
They are a way to encourage innovation by protecting the rights of the innovator to be the only one to benefit from selling the innovation for a certain amount of time.
This allows the innovator to recoup the amounts they spent on the innovation without worrying about competing with others who will copy the technology.
In conclusion, option B is correct.
Find out more on patents at brainly.com/question/711313.
I think that most of the people borrow money for large purchases instead of using a sinking fund because if you need money immediately borrowing money is a simple and easy thing, it takes less time whereas if you use sinking fund, it will take more time because for this you have to make plans earlier but it is a safe and protected method for clearing the debts.
Answer:
The answer is $3,300.
Explanation:
To calculate interest paid on an amount, the following formula is used:
Simple interest = Principal × Rate × Time
Principal = $110,000
Rate in decimal = 9% = 0.09
Time in years = 4 months = 4/12 years
∴ Simple interest = $110,000 × 0.09 × 4/12 = $3,300.
Answer:
The correct answer is: the costs.
Explanation:
Debt financing is money borrowed to be repaid over a period of time usually as forms of credits or loans from financial institutions such as banks. The benefit of debt financing is that an organization could turn a small amount of money into a large sum. The drawback is that the money borrowed requires payment with interest regardless the organization had revenues or not.
Equity capital is the financing method of a company through stocks. The funds must not be repaid but the organization gives part to its ownership to the investors who profit from dividends.
<em>The cost of equity is higher than the cost of debt</em> because equity financing is a greater risk to the investor since stockholders eventually can take over the ownership of a firm, something that does not happen with debt financing.