A Prototype Is a

question 15

Multiple Choice

A prototype is a

• A) miniature version of an actual new product used in concept testing to identify any changes that need to be made prior to its commercialization.
• B) full-scale operating model of the product or service under development.
• C) sample of a new product given to prospective customers and opinion leaders used to generate awareness prior to the product's commercial release.
• D) simulated operating model of the product given to consumers to use in full-scale field testing.
• E) digital version of a product produced in multiple shapes, colors, and sizes to determine which version of the product customers like best.

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Definitions:

Noncontrolling Interest

A share in the equity of a subsidiary not owned by the parent company, also known as minority interest, reflecting ownership that does not have controlling power.

Net Income

The amount of total revenues that exceed total expenses of a company in a given period, often viewed as "profit" or "earnings."

Initial Value Method

The Initial Value Method is an accounting approach for investments, where the investment is recorded at its cost at the time of purchase without adjusting for changes in market value.

Noncontrolling Interest

The portion of equity (ownership) interest in a subsidiary not attributable to the parent company, reflecting the minority shareholders' share of the subsidiary’s net assets and incomes.