Which of the Following Statements Best Defines Product Development

question 41

Multiple Choice

Which of the following statements best defines product development?

• A) The evolution of products supplied by an industry over time
• B) The development of the underlying technologies used in the products the firm sells
• C) R&D activity to generate possible new products for launch if sales of existing ones decline
• D) The development of new products to sell in existing markets

---

Definitions:

Total Asset Turnover

An efficiency metric indicating how well a company leverages its assets to generate revenue from sales.

Average Sale Period

The average time it takes for a business to convert its inventory into sales, indicating the efficiency of inventory management.

Debt-to-equity Ratio

Debt-to-equity Ratio is a financial metric that compares a company’s total liabilities to its shareholder equity.

Return on Equity

An indicator of a company's financial success, showing the amount of profit generated from the investments made by its shareholders.