Which of the Following Statements Best Explains Why Idea Screening

question 164

Multiple Choice

Which of the following statements best explains why idea screening may be the most import step of new product development?

• A)It increases the number of ideas generated.
• B)Some potentially profitable ideas may be ill perceived by the idea screeners.
• C)Some ideas that will become market disasters may be originally viewed favourably by the idea screeners.
• D)It gives research and development team members an opportunity to gather consumer feedback.
• E)It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily coincide with its market value.

Expiration Date

In finance, this term often refers to the date on which a derivative contract, such as an option or futures contract, becomes void and ceases to trade.

Option Contract

A financial derivative contract that grants the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date.

Exercise Price

The price at which the holder of an option can buy or sell the underlying security.