Under What Circumstances Might It Be Wise for a Company

question 69

Multiple Choice

Under what circumstances might it be wise for a company to do little or no test marketing?

• A)when the product has no substitutes and is new in its category
• B)when the costs of developing and introducing the product are low
• C)when management is not sure of the marketing program
• D)when management is not sure of the product
• E)when a new product requires a major investment

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Definitions:

Limited Partnership

A business structure where at least one partner is liable only to the extent of their investment in the company, while at least one other partner has unlimited liability.

Management Responsibilities

The duties and tasks associated with directing and controlling an organization or one of its units.

Invest

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Franchise Agreements

Franchise agreements are legal contracts between a franchisor and franchisee, outlining the terms for the franchisee to operate a franchised business.