The Screening and Evaluation Stage of the New-Product Development Process

question 269

Multiple Choice

The screening and evaluation stage of the new-product development process involves

• A) internal and external appraisals of new-product ideas.
• B) product selection and budgeting projections.
• C) business and cost analyses.
• D) patent searches and environmental scanning.
• E) idea selection and prototype development.

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Definitions:

Clientele Effect

A theory suggesting that changes in dividend policy may attract different groups of investors based on their preferences for dividend payouts versus capital gains.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, typically expressed as a percentage.

Price/earnings Ratio

A valuation metric for companies, calculated as the market value per share divided by the earnings per share.

Excess Cash

Refers to the amount of cash held by a company that exceeds the normal operational needs, often indicating a potential for investment, distribution to shareholders, or acquisition.