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When a company continuously spends on research and development what is its main objective?

Answer and explanation

Correct answer: Developing innovative products and processes

The direct answer is option C: developing innovative products and processes. Research and development, commonly called R&D, is organised work used to discover knowledge, improve technology, design new products, and make processes more effective. When a company spends on R&D continuously, it is preparing for future improvement rather than merely performing a routine office activity. For example, it may create a safer product, develop faster software, reduce production waste, or find a more efficient manufacturing method. Option A, improving office decoration, may make a workplace look better but is not the main purpose of research and development. Option B, avoiding taxes, is not the proper business objective of R&D and does not define technological innovation. Option C is correct because it directly states the two central outcomes: innovative products and improved processes. Option D, removing accounting books, is unrelated to scientific investigation, product design, or process improvement. R&D can support long-term competitiveness because new ideas may improve quality, reduce cost, satisfy changing customers, and distinguish a company from rivals. It does not guarantee success, but it creates a structured basis for innovation. The exam cue is: R&D means new knowledge, new products, better methods, and long-term technological advantage—not decoration or tax avoidance.

Related tags

Business-EnvironmentResearch-DevelopmentInnovation

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