The Development Route for New Products Takes Two Forms

question 49

Multiple Choice

The development route for new products takes two forms. These two forms are ________ or it can ________.

• A) contract out for new products/acquire new products from existing companies
• B) new products in its own labs/introduce existing products as "new"
• C) enhance existing products/piggyback on others' inventions
• D) new products in its own labs/contract with outside firms
• E) new products in its own labs/acquire new products from existing companies

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Definitions:

Gain Recognition

The process of recording increases in asset value, typically when assets are sold for more than their book value.

Consolidated Income Statement

A financial statement that combines the income, expenses, and profits of a parent company and its subsidiaries to present the overall performance.

Subsidiary Sold Land

An event where a company owned by another company sells a piece of real estate.

Consolidated Sales

The total sales revenue of a parent company and its subsidiaries, reported as one figure in the consolidated financial statements.