Which of the Following Is the Most Likely Circumstance for a Company

question 30

Multiple Choice

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?

• A) when the new product requires a major investment
• B) when management lacks confidence in the new product
• C) when management lacks confidence in the marketing strategy
• D) when the product has no substitutes and is new in its category
• E) when the costs of developing and introducing the product are low

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Definitions:

Future Cash Flows

The estimated amount of money to be received or paid out over a specified future period by an investment or business operation.

Stockbroker

A professional who buys and sells stocks and other securities on behalf of clients in exchange for a fee or commission.

Securities

Financial instruments that represent an ownership position in a publicly traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Collateral

An asset that a borrower offers to a lender as security for a loan.