Backward Invention Occurs When a Firm ________

question 89

Multiple Choice

Backward invention occurs when a firm ________.

• A) creates a new product to meet a need in another country
• B) reintroduces earlier product forms adapted to suit another country's needs
• C) invents products that are similar to competing offerings
• D) takes an existing product into a new market
• E) produces its own raw materials

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.

Days' Sales In Inventory

Days' sales in inventory is a financial ratio that shows how many days, on average, it takes for a company to turn its inventory into sales, indicating inventory management efficiency.

Return On Common Stockholders' Equity

A measure of a company's profitability that shows how much profit is generated with the money shareholders have invested.

Net Income

The amount of profit left over after all expenses and taxes have been subtracted from total revenues.