Gama Technosoft Plans to Remodel and Restructure Their Cell Phones

question 49

Multiple Choice

Gama Technosoft plans to remodel and restructure their cell phones and to launch a new version. However, Linda, the head of the design team, was skeptic of this idea. The management tried to convince Linda saying that it will keep the company growing as the new product will be refreshing for the customers. Which of the following statements can justify Linda's viewpoint in this scenario?

• A) It would only attract first-time buyers and not the existing customers.
• B) An improvement to the existing product will discourage private spending by increasing taxes.
• C) The sales of a new model will not be able to replace the sales of the existing model.
• D) It will have limited potential to capture additional market share.

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Indirect Cost

Expenses not directly tied to the production of goods or services but necessary for the overall operation, such as administration, utilities, and security.

Operating Telephone System

The infrastructure and processes that support the functionality of telephones, enabling voice communication over distances.

Qualifications

The credentials, such as degrees or certifications, that prove someone's capability or skill in a specific area.