Managers Perceive Internal Product Development as a High-Risk Activity and Tend

question 107

Multiple Choice

Managers perceive internal product development as a high-risk activity and tend to choose acquisitions because approximately __________ percent of innovations fail to achieve adequate returns.

• A) 48
• B) 68
• C) 88
• D) 98

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Definitions:

Specified Period

A specified period refers to a distinct, predefined duration of time during which certain activities are carried out or certain conditions apply, often detailed in contracts, plans, and schedules.

Incremental Productivity Method

A cost-based sales force sizing approach that compares the cost of adding one salesperson to expected additional sales revenue; the company will keep adding salespeople as long as the revenue exceeds the added cost.

Market Potential

This is an estimate of the maximum total sales of a product or service by all vendors to all potential customers within a specific market segment.

Sales Force Size

The total number of individuals in a company's sales team responsible for selling its products or services.