With Regard to the Concept or Project Evaluation Phase of the New

question 33

Multiple Choice

With regard to the concept or project evaluation phase of the new product process, a prototype concept is best described as a:

• A) company skill or resource, or a customer problem.
• B) form or a technology, plus a clear statement of benefit.
• C) tentative physical product or system procedure, including features and benefits.
• D) product definition that includes the intended market user, the problem perceived, and the benefits that the new product would have to have.

---

Definitions:

Loan Covenants

Conditions set by lenders that borrowers must agree to and maintain to remain in compliance with the terms of the loan agreement.

Interest Payments

The payments made by a borrower to a lender for the use of borrowed money, typically expressed as an annual percentage of the principal.

Accounting-based Incentives

Incentives designed based on accounting figures and performance metrics to motivate employees or management toward specific behaviors.

Earnings Growth

An increase in a company's net income over a specified period, indicating financial health and profitability.