Final answer:
The not true statement about the R&D limited partnership is decreased impulse to spend. Lack of external benefits tends to decrease investment in R&D, as the positive externalities encourage such investments. Governments might prefer private investment in R&D to leverage company expertise and minimize bureaucracy.
Step-by-step explanation:
The option that is not true is (d) Decreased impulse to spend. Limited partnerships in R&D (Research and Development) offer various advantages to investors, but decreased impulse to spend is typically not one of them. Instead, the correct answers would be: (a) Limited liability for losses provides partners with protection against personal financial risk beyond their investment in the partnership. (b) Increased flexibility allows for diverse investment strategies and management structures. (c) External capital infusion is facilitated as investors contribute funds to the research and development activities, which might be unaffordable for a single company to fund.
When examining the influence of external benefits, if there are no external benefits, the demand for borrowing and investing in R&D is likely to be lower. This is because external benefits, or positive externalities, such as technological spill-overs and advancements that benefit other companies and society, often justify and encourage such investments. Therefore, companies are less incentivized to commit to large R&D projects in the absence of externalities.