Launching a New Product Is a Big Risk Because Most

question 36

Short Answer

Launching a new product is a big risk because most new products fail to make it in the marketplace. Managers are generally inclined to take the risk only if there is a 95 percent or better chance of success. However, your manager has just decided to market a new product with only a 75 percent chance of being successful. This behavior is characteristic of which of the following? a. transfonmational leadersinip
b. tratsactional leadership

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Definitions:

Annual Rate

Typically refers to the interest rate for a whole year, often applied in terms of loans, investments, or savings.

Invests

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

Present Value

The present value of a sum of money or sequence of cash flows expected in the future, calculated using a certain rate of return.

Discounting

A financial process of determining the present value of a payment or a series of payments that will be made in the future.