Chris Is Developing an Innovative Picture Book for Kids

question 45

Multiple Choice

Chris is developing an innovative picture book for kids. He believes that it will be something every grandparent in the world will want to buy for his or her grandchild.Creating an innovative book does not necessarily mean that the book will be successful. In order to make his book a success, which of the following will Chris need to consider first and foremost?

• A)Chris needs to consider if there are enough people in the target group to support the business.
• B)Chris should look for a market that sells similar products and compete against them.
• C)Chris should look for a target group that is ready to pay large sums of money to cover the costs of marketing and production.
• D)Chris should look for target groups in any part of the world without considering the distance.

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Definitions:

Capital Budgeting Process

The procedure businesses follow to evaluate potential major projects or investments, through stages from proposal generation to project approval.

Favorably Biased

A tendency to present information in a manner that is more positive or beneficial than is justified by the facts.

Annual Depreciation Expense

The portion of the cost of a fixed asset that is expensed each year of its useful life, representing wear and tear, decay, or decrease in value.

Cash Inflows

Refers to the money received by a business from its operational, investment, and financing activities.