8. Given the situations below:
a. Discuss, with reasons, whether they fall into the category of applied or basic research.
This is a general issue that relates to all or most companies contemplating acquisitions. Of course, the results of the study are likely to be useful to, and applied by all the concerned companies. This could fall into the realm of basic or applied research, depending on who sponsors the study. If one company or a consortium of companies investigates the issue to find an answer for immediate application, then it will be applied research On the other hand, if a Finance professor in a university undertakes the study as a matter of academic interest, it will be basic research.
A university professor desired to analyze in depth the reasons for absenteeism of employees in organizations. Fortunately, a company within 20 miles of the campus, employed her as a consultant to study this very issue. The basic research aspiration of the professor has taken the form of applied research in this particular system, where they would apply the findings of her research to solve the problem. No doubt, the professor would continue her research in a variety of organizations to add to the existing base of knowledge on absenteeism and continue the topic as a basic research project.
Such research is called applied research. In sum, research done with the intention of applying the results of the findings to solve specific problems currently being experienced in an organization. For example, a particular product may not be selling well and the manager might want to find the reasons for this in order to take corrective action.
b. For Scenario 1, explain with reasons who will conduct the research.
Either an individual such as a professor or a finance expert can do this basic research, or a company or consortium of companies can undertake the applied research.
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