For a New Product to Be Profitable, It Must

question 45

Multiple Choice

For a new product to be profitable, it must

• A)enable customers to obtain greater total utility from their money income.
• B)be less expensive than existing substitute products.
• C)have greater marginal utility than existing substitute products.
• D)embody process innovation.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.

Assigning

The process of allocating or designating resources, tasks, responsibilities, or rights to specific entities or persons within the context of business or legal proceedings.

Pledging

Pledging involves using assets as collateral to secure a loan or obligation, ensuring the lender or party has a claim to the asset if the borrower defaults.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total accounts receivable on the balance sheet to reflect the amount that is expected to go uncollected.