By Adding New Product Lines Beyond Its Core Business of Computer

question 84

Multiple Choice

By adding new product lines beyond its core business of computer software, like the Surface Pro tablet and Xbox 360 game system, Microsoft primarily benefits by

• A)keeping up in a market where sales come mostly from new products.
• B)satisfying the changing needs of the technological research staff.
• C)avoiding market saturation from products that have just been introduced to the market.
• D)creating diversification and reducing risk.
• E)spreading out production costs.

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Definitions:

Roth Retirement Plan

A type of retirement savings plan where contributions are made with after-tax dollars, and qualified withdrawals in the future are tax-free.

Income Growth

The increase in the amount of money earned from investments or employment over time, reflecting economic expansion or personal financial improvement.

Effective Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing the total tax paid by the taxable income.

401k Plan

A retirement savings plan sponsored by an employer allowing employees to save and invest a portion of their paycheck before taxes are taken out.