To Select the Most Promising Product Ideas, Teams from Inside

question 27

Multiple Choice

To select the most promising product ideas, teams from inside the company will ask all of the following questions except:

• A)Does the proposed product fill an unmet need of our customers
• B)Will we be the first company to come out with this product
• C)Will enough people buy our product to make it commercially successful
• D)Do we have the resources and expertise to make it

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Definitions:

Weighted Average Cost of Capital

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted, used to assess the cost of funding new projects.

Taxable Income

The portion of an individual's or company's income used to determine how much tax will be owed to the federal, state, and/or municipal governments.

Shareholders

Individuals or entities that own shares in a company, giving them ownership interest.

Tax Liability

The total amount of taxes owed by an individual, corporation, or other entity to the government within a given tax period.