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:

FOB Destination

A shipping term indicating that the seller is responsible for the goods and the shipping cost until the items reach the buyer's specified location.

Net Sales

Total sales revenue after deducting returns, allowances for damaged or missing goods, and discounts.

Cost of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold in a company.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the financial performance of a company's core business activities.